Waters Corporation (WAT)

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	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	875,388	864,642	864,603	867,040
Payables	US$ in thousands	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	49,001	64,805	67,397	72,367
Payables turnover		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	17.86	13.34	12.83	11.98

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,165,932K ÷ $84,705K
= 13.76

The payables turnover ratio for Waters Corp. has shown a generally increasing trend over the past eight quarters. The ratio increased from 12.74 in Q1 2022 to 15.35 in Q3 2023, peaking in Q3 2023. This indicates that the company is paying off its accounts payable more frequently, which could be a positive sign of efficiency in managing its short-term liabilities.

A higher payables turnover ratio suggests that the company is able to efficiently manage its trade credit obligations by paying suppliers more frequently. This may indicate good relationships with suppliers and potentially favorable payment terms negotiated by the company.

However, it is important to note that an extremely high payables turnover ratio may also imply aggressive management of payables, which could strain relationships with suppliers if not managed carefully.

Overall, the increasing trend in Waters Corp.'s payables turnover ratio indicates that the company has been effectively managing its accounts payable, but it is essential to continue monitoring this trend to ensure sustainable and mutually beneficial relationships with suppliers.