Xpel Inc (XPEL)

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
Cost of revenue (ttm) US$ in thousands 334,339 310,455 297,658 283,653 274,485 268,379 253,725 240,970 221,648 200,491 179,543 153,955 136,511 129,717 121,916 117,328
Payables US$ in thousands 24,233 30,419 21,806 13,453 16,689 22,436 29,523 36,178 25,175 27,008 17,773 16,152 12,987 11,868 11,340 9,023 7,441 7,127 8,004
Payables turnover 13.80 10.21 13.65 21.08 16.45 11.96 8.59 6.66 8.80 7.42 10.10 9.53 10.51 10.93 10.75 13.00

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $334,339K ÷ $24,233K
= 13.80

The payables turnover ratio measures how effectively a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance. A higher payables turnover ratio indicates that a company is paying its suppliers more frequently.

In the case of XPEL Inc, the payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 4.81 in Q1 2022 to a high of 12.42 in Q1 2023. This variability could be attributed to changes in the company's purchasing habits, supplier relationships, or payment terms.

Overall, XPEL Inc's payables turnover has generally increased from Q1 2022 to Q4 2023, except for a slight decrease in Q3 2023. The significant improvement in payables turnover from Q1 2022 to Q1 2023 suggests that the company may be managing its accounts payable more efficiently and paying its suppliers at a quicker pace. This could indicate improved cash flow management and potentially stronger relationships with suppliers.

Investors and stakeholders may view XPEL Inc's improving payables turnover ratio positively, as it indicates effective management of working capital and potential cost savings through better negotiating power with suppliers. However, it is essential to consider other financial metrics and qualitative factors to gain a comprehensive understanding of the company's overall financial health and performance.