Cactus Inc (WHD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 161,026 | 76,408 | 54,874 | 53,034 | 61,810 |
| Payables | US$ in thousands | 71,841 | 47,776 | 42,818 | 20,163 | 40,957 |
| Payables turnover | 2.24 | 1.60 | 1.28 | 2.63 | 1.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $161,026K ÷ $71,841K
= 2.24
The payables turnover ratio for Cactus Inc has fluctuated over the past five years, indicating varying efficiency in managing its accounts payable. In 2023, the company had a payables turnover of 2.24, suggesting that it turned over its accounts payable approximately 2.24 times during the year. This represents an improvement from the previous year's ratio of 1.60 but is still lower than the peak ratio of 2.63 in 2020.
A higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly, which could be a positive sign of strong liquidity and efficient working capital management. However, it is essential to consider industry norms and the company's specific circumstances when assessing the adequacy of the payables turnover ratio. Further analysis of Cactus Inc's financial performance and other relevant ratios would provide more insights into its overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023