Willscot Mobile Mini Holdings Corp A (WSC)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,093,880 | 1,030,900 | 1,007,140 | 926,689 | 707,672 |
| Payables | US$ in thousands | 96,597 | 86,123 | 108,071 | 102,563 | 106,926 |
| Payables turnover | 11.32 | 11.97 | 9.32 | 9.04 | 6.62 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,093,880K ÷ $96,597K
= 11.32
The payables turnover ratio of Willscot Mobile Mini Holdings Corp A demonstrates a consistent upward trend over the specified period from December 31, 2020, to December 31, 2024. Starting at 6.62 times in 2020, the ratio increased to 9.04 in 2021, further rising to 9.32 in 2022. By 2023, the ratio accelerated significantly to 11.97, indicating a faster cycle of paying off its accounts payable. Although there was a slight decrease to 11.32 in 2024, the overall trend remains positive.
This increasing payables turnover suggests an improvement in the company's ability to pay its short-term obligations more quickly over time. The significant rise from 2020 to 2023 implies enhanced liquidity management or possibly more favorable supplier terms, allowing the company to settle its payables more rapidly. The minor decline in 2024 may reflect a temporary change in payment policies or shifts in operational cash flow, but the ratio still remains substantially higher than the 2020 level.
Overall, the trend indicates a strengthening in the company's working capital cycle, with faster accounts payable turnover contributing to improved liquidity management. This progression potentially enhances the company's creditworthiness and operational efficiency, though ongoing analysis would be required to determine the underlying causes and implications of these changes.