Advanced Drainage Systems Inc (WMS)
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 | 197,089 | 188,030 | 179,247 | 173,491 | 171,208 | 207,890 | 201,067 | 182,809 | 165,315 | 457,512 | 439,042 | 427,256 | 415,039 | 422,362 | 417,856 | 420,446 | 396,278 | 557,881 | 768,796 | 1,040,284 |
| Payables | US$ in thousands | 254,401 | 207,902 | 223,536 | 205,591 | 210,111 | 174,106 | 236,603 | 274,606 | 224,986 | 195,471 | 257,576 | 229,300 | 171,098 | 108,368 | 114,030 | 96,654 | 106,710 | 78,292 | 111,450 | 106,413 |
| Payables turnover | 0.77 | 0.90 | 0.80 | 0.84 | 0.81 | 1.19 | 0.85 | 0.67 | 0.73 | 2.34 | 1.70 | 1.86 | 2.43 | 3.90 | 3.66 | 4.35 | 3.71 | 7.13 | 6.90 | 9.78 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $197,089K ÷ $254,401K
= 0.77
The payables turnover ratio for Advanced Drainage Systems Inc has fluctuated over the past several quarters. The ratio decreased from 0.77 in March 2024 to 0.90 in December 2023, indicating a longer time taken to pay off its payables. This trend continued to September 2023 where the ratio was 0.80 before improving slightly to 0.84 in June 2023.
The company experienced a significant improvement in payables turnover in the latter half of 2022, with the ratio reaching 1.19 in December 2022 after a low point of 0.67 in June 2022. However, this improvement was not sustained, as the ratio decreased to 0.85 in September 2022 and further to 0.73 in June 2022.
In the first half of 2022, there was another notable increase in payables turnover, with ratios of 2.34 in March 2022 and 1.70 in December 2021. This upward trend continued into 2021, with ratios of 1.86 in September 2021 and 2.43 in June 2021.
The payables turnover ratio surged to 3.90 in March 2021 and reached its peak for the analyzed period at 4.35 in June 2020. This high turnover was also seen in preceding quarters, with ratios of 3.71 in March 2020 and 7.13 in December 2019.
Overall, the payables turnover ratio for Advanced Drainage Systems Inc has shown variations, with periods of both improvement and decline. The company's ability to manage its payables effectively has shown resilience, characterized by fluctuations in the ratio over the analyzed quarters.