Waste Management Inc (WM)
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 | 15,006,000 | 14,696,000 | 14,668,000 | 14,643,000 | 14,468,000 | 14,310,000 | 14,056,000 | 13,612,000 | 13,195,000 | 12,779,000 | 12,158,000 | 11,593,000 | 11,366,000 | 8,190,000 | 8,263,000 | 8,477,000 | 8,431,000 | 8,402,000 | 8,293,000 | 8,138,000 |
| Payables | US$ in thousands | 1,709,000 | 1,738,000 | 1,626,000 | 1,510,000 | 1,766,000 | 1,489,000 | 1,382,000 | 1,384,000 | 1,375,000 | 1,466,000 | 1,393,000 | 1,212,000 | 1,121,000 | 884,000 | 904,000 | 1,031,000 | 1,065,000 | 903,000 | 908,000 | 899,000 |
| Payables turnover | 8.78 | 8.46 | 9.02 | 9.70 | 8.19 | 9.61 | 10.17 | 9.84 | 9.60 | 8.72 | 8.73 | 9.57 | 10.14 | 9.26 | 9.14 | 8.22 | 7.92 | 9.30 | 9.13 | 9.05 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,006,000K ÷ $1,709,000K
= 8.78
The payables turnover ratio measures how efficiently Waste Management, Inc. is managing its accounts payable by assessing how many times the company pays off its suppliers within a given period.
Looking at the data provided, we observe fluctuations in the payables turnover ratio over the past eight quarters. The ratio varies between a low of 6.96 in Q4 2022 and a high of 8.70 in Q2 2023.
A higher payables turnover ratio generally indicates that Waste Management is paying off its suppliers more frequently, which could imply efficient cash management or good relationships with suppliers. Conversely, a lower ratio could suggest the company is taking longer to pay its bills, which may have implications for supplier relationships or cash flow management.
It is important to consider industry benchmarks and historical trends when evaluating the payables turnover ratio. A comprehensive analysis would also involve examining the company's payment terms, cash flow position, and overall financial health to provide a more holistic understanding of the company's payables management.
Peer comparison
Dec 31, 2023