Willscot Mobile Mini Holdings Corp A (WSC)
Payables turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,100,906 | 1,112,014 | 1,115,048 | 1,100,240 | 1,058,850 | 1,030,897 | 1,023,928 | 1,048,629 | 1,067,181 | 1,066,920 | 1,044,140 | 991,302 | 956,825 | 926,689 | 890,630 | 861,378 | 769,984 | 707,672 | 673,135 | 634,298 |
| Payables | US$ in thousands | 93,976 | 96,597 | 107,789 | 118,890 | 100,490 | 86,123 | 92,319 | 91,783 | 92,057 | 108,071 | 160,262 | 155,901 | 135,355 | 102,563 | 145,320 | 132,031 | 111,408 | 106,926 | 114,249 | 87,847 |
| Payables turnover | 11.71 | 11.51 | 10.34 | 9.25 | 10.54 | 11.97 | 11.09 | 11.43 | 11.59 | 9.87 | 6.52 | 6.36 | 7.07 | 9.04 | 6.13 | 6.52 | 6.91 | 6.62 | 5.89 | 7.22 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,100,906K ÷ $93,976K
= 11.71
The payables turnover ratio for Willscot Mobile Mini Holdings Corp A exhibits notable fluctuations over the analyzed periods, reflecting variations in the company's payment practices and working capital management. At the start of the period, as of June 30, 2020, the ratio stood at 7.22, indicating that payables were settled approximately 7.22 times within the fiscal year. Throughout 2020, this ratio experienced slight declines, reaching a low of 5.89 by September 30, 2020, before gradually increasing again to 6.91 by March 31, 2021.
In 2021, the ratio displayed a significant upward trend, culminating at 9.04 by December 31, 2021, suggesting an acceleration in the company's payment cycle or improvements in vendor terms. This upward movement continued into 2022, with ratios moving from 7.07 in March to a peak of 9.87 by December. The first quarter of 2023 saw the ratio at 11.59, further indicative of the company paying its obligations more rapidly relative to its purchases or current liabilities.
Subsequently, the ratio maintained a generally high level, with minor fluctuations, registering 11.43 in June 2023 and slightly decreasing to 11.09 in September 2023. The ratio further increased to 11.97 by December 2023, reaching the highest point within the analyzed timeframe. In the subsequent quarters of 2024 and early 2025, the ratio remained elevated, settling around 9.25 in June 2024, then rising again to approximately 10.34 in September 2024, and maintaining a level of approximately 11.51 to 11.71 by the end of March 2025.
Overall, the trend indicates a progression toward a higher payables turnover ratio over the period, especially marked from late 2021 onward. This consistent increase suggests an improvement in the company's efficiency in settling its accounts payable or a shift toward shorter payment cycles, which may impact working capital and cash flow management strategies. Such behavior could be driven by better vendor negotiations, changes in payment policies, or increased operational activity.