Alcoa Corp (AA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,201,000 | 10,595,000 | 8,590,000 | 8,216,000 | 10,340,000 |
| Payables | US$ in thousands | 1,714,000 | 1,757,000 | 1,674,000 | 1,403,000 | 1,484,000 |
| Payables turnover | 5.95 | 6.03 | 5.13 | 5.86 | 6.97 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,201,000K ÷ $1,714,000K
= 5.95
The payables turnover ratio for Alcoa Corp has been relatively stable over the past five years, ranging from 5.47 to 5.81 times. This indicates that, on average, the company is able to pay off its accounts payables approximately 5.5 to 5.8 times per year. A higher payables turnover ratio is generally favorable as it suggests that the company is efficiently managing its trade payables by paying them off quickly. Alcoa Corp's consistent payables turnover ratio demonstrates its ability to effectively manage its payables and maintain good relationships with suppliers by settling its obligations in a timely manner.
Peer comparison
Dec 31, 2023