Waste Management Inc (WM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,071,000 | 14,524,000 | 13,245,000 | 11,356,000 | 11,379,000 |
| Payables | US$ in thousands | 1,709,000 | 1,766,000 | 1,375,000 | 1,121,000 | 1,065,000 |
| Payables turnover | 8.82 | 8.22 | 9.63 | 10.13 | 10.68 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,071,000K ÷ $1,709,000K
= 8.82
The payables turnover ratio measures how effectively a company is managing its accounts payable. Waste Management, Inc.'s payables turnover has been decreasing over the past five years, from 8.92 in 2019 to 7.38 in 2023.
A decreasing payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could strain relationships with vendors. It could also suggest potential cash flow issues or inefficiencies in managing payables.
However, it's important to consider industry benchmarks and company-specific factors before drawing definitive conclusions. Further analysis is warranted to understand the reasons behind the trend and its implications for Waste Management, Inc.'s financial health and operations.
Peer comparison
Dec 31, 2023