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.