WESCO International Inc (WCC)
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 | 20,978,800 | 20,997,840 | 20,778,260 | 20,509,380 | 19,982,030 | 19,437,180 | 18,891,720 | 18,155,800 | 17,415,880 | 16,140,880 | 14,998,280 | 12,314,310 | 9,998,330 | 8,351,100 | 6,742,750 | 6,790,930 | 6,777,450 | 6,688,910 | 6,910,730 | 7,182,430 |
| Payables | US$ in thousands | 2,431,500 | 2,650,000 | 2,662,700 | 2,648,300 | 2,728,200 | 2,578,740 | 2,652,310 | 2,341,140 | 2,140,250 | 2,246,450 | 2,192,780 | 1,955,360 | 1,707,330 | 1,830,880 | 1,660,090 | 804,330 | 830,478 | 849,584 | 868,605 | 870,242 |
| Payables turnover | 8.63 | 7.92 | 7.80 | 7.74 | 7.32 | 7.54 | 7.12 | 7.76 | 8.14 | 7.19 | 6.84 | 6.30 | 5.86 | 4.56 | 4.06 | 8.44 | 8.16 | 7.87 | 7.96 | 8.25 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $20,978,800K ÷ $2,431,500K
= 8.63
The payables turnover ratio for Wesco International, Inc. has been relatively stable over the past eight quarters, ranging between 5.94 and 7.21. This ratio indicates how efficiently the company is managing its accounts payables by measuring how many times during a period the company pays off its average accounts payable balance.
Given the values provided, we can see that Wesco International, Inc. has been able to pay off its accounts payable approximately 6 to 7 times each year. A higher payables turnover ratio generally indicates that the company is managing its accounts payable effectively, possibly through early payments or negotiating favorable credit terms.
Overall, Wesco International, Inc. has shown consistent performance in managing its accounts payables, which is a positive sign of efficient cash flow management and strong vendor relationships. Additional analysis and comparison with industry peers may provide further insights into the company's payment practices and financial health.
Peer comparison
Dec 31, 2023