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.