Cactus Inc (WHD)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 158,040 | 158,033 | 128,057 | 114,478 | 91,149 | 75,246 | 64,536 | 60,715 | 57,359 | 53,720 | 51,523 | 47,758 | 45,924 | 51,011 | 49,047 | 55,978 | 61,575 | 58,445 | 54,386 | 50,122 |
| Payables | US$ in thousands | 66,142 | 71,841 | 65,217 | 63,585 | 56,743 | 47,776 | 62,398 | 57,366 | 51,168 | 42,818 | 43,405 | 33,505 | 21,053 | 20,163 | 15,573 | 13,288 | 34,476 | 40,957 | 40,959 | 46,346 |
| Payables turnover | 2.39 | 2.20 | 1.96 | 1.80 | 1.61 | 1.57 | 1.03 | 1.06 | 1.12 | 1.25 | 1.19 | 1.43 | 2.18 | 2.53 | 3.15 | 4.21 | 1.79 | 1.43 | 1.33 | 1.08 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $158,040K ÷ $66,142K
= 2.39
The payables turnover ratio for Cactus Inc has shown fluctuations over the past few quarters. The ratio indicates the number of times a company pays off its accounts payable during a specific period. A higher payables turnover ratio typically suggests that the company is efficiently managing its payables by paying them off quickly.
Looking at the data provided, the payables turnover ratio for Cactus Inc ranged from 1.03 to 4.21 over the past 21 quarters. The ratio hit its peak of 4.21 in June 2020, indicating that the company was paying off its accounts payable more than four times during that quarter. This could signify strong liquidity and effective management of trade credit.
In contrast, the lowest ratio of 1.03 was observed in September 2022, suggesting that the company took a longer time to settle its payables during that quarter. A low payables turnover ratio may indicate liquidity issues or potential inefficiencies in managing payables.
Overall, the trend in the payables turnover ratio for Cactus Inc has been fluctuating, showing periods of both efficiency and potential inefficiency in managing its accounts payable. Further analysis and comparison with industry benchmarks could provide additional insights into the company's financial performance and management of working capital.
Peer comparison
Mar 31, 2024