Waters Corporation (WAT)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,164,754	1,142,082	1,181,090	1,182,867	1,165,932	1,179,017	1,114,162	814,184	1,063,582	1,065,385	1,051,680	1,075,765	1,030,115	987,702	968,828	1,164,402	925,954	885,419	874,025	888,784
Payables	US$ in thousands	99,931	94,596	78,436	86,219	84,705	79,834	81,918	93,558	93,302	96,567	97,980	93,235	96,799	88,904	83,249	81,511	72,212	60,357	50,325	61,059
Payables turnover		11.66	12.07	15.06	13.72	13.76	14.77	13.60	8.70	11.40	11.03	10.73	11.54	10.64	11.11	11.64	14.29	12.82	14.67	17.37	14.56

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,164,754K ÷ $99,931K
= 11.66

The payables turnover ratio for Waters Corporation fluctuated over the past few years. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a certain period.

From March 31, 2020 (14.56) to March 31, 2024 (13.72), the payables turnover ratio declined slightly, indicating a decrease in the frequency of paying off accounts payable. This could mean that Waters Corporation took longer to pay its suppliers during this period.

Notable fluctuations were observed during the analyzed period, with peaks in June 2020 (17.37), June 2023 (13.60), and June 2024 (15.06), indicating relatively more efficient management of accounts payable during these quarters.

However, the ratio dropped to its lowest point on March 31, 2023 (8.70), suggesting a significant decrease in the company's efficiency in paying off its accounts payable during that specific quarter.

Overall, the downward trend in the payables turnover ratio over the period, with some fluctuations, may raise concerns about the company's management of accounts payable and liquidity position. Further analysis and comparison with industry benchmarks would be beneficial to gain a more comprehensive understanding of Waters Corporation's payables management efficiency.