Verra Mobility Corp (VRRM)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	281,210	252,259	258,809	262,856	269,778	264,376	251,130	231,307	213,568	116,781	103,412	100,304	98,558	181,365	184,647	190,189	184,483	349,362	307,153	260,751
Payables	US$ in thousands	78,749	89,760	78,410	71,475	79,869	69,135	69,107	63,049	67,556	48,632	47,403	41,334	34,509	45,601	36,346	39,198	50,825	57,194	49,318	52,239
Payables turnover		3.57	2.81	3.30	3.68	3.38	3.82	3.63	3.67	3.16	2.40	2.18	2.43	2.86	3.98	5.08	4.85	3.63	6.11	6.23	4.99

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $281,210K ÷ $78,749K
= 3.57

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance during a specific period.

Looking at the data provided for Verra Mobility Corp, we observe fluctuations in the payables turnover ratio over the past eight quarters. In Q4 2023, the payables turnover ratio was 0.55, indicating that the company converted its accounts payable into purchases 0.55 times during the quarter. This ratio decreased from the previous quarter, Q3 2023, where it was 0.47.

Compared to Q1 2023 and Q4 2022, where the payables turnover ratios were 0.66 and 0.59, respectively, there has been a decline in the efficiency of managing payables in more recent quarters.

Q2 2022 showed a relatively high payables turnover ratio of 0.70, suggesting that the company was managing its accounts payable more efficiently during that period. However, this declined slightly in subsequent quarters.

Overall, the payables turnover ratio for Verra Mobility Corp has been somewhat volatile, indicating fluctuations in the efficiency of managing its accounts payable. Further analysis and comparison with industry benchmarks may provide additional insights into the company's payables management performance.