American Airlines Group (AAL)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	35,852,000	34,971,000	34,907,000	25,895,000	20,562,000
Payables	US$ in thousands	2,455,000	2,353,000	2,149,000	1,772,000	1,196,000
Payables turnover		14.60	14.86	16.24	14.61	17.19

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $35,852,000K ÷ $2,455,000K
= 14.60

The payables turnover ratio for American Airlines Group has shown a fluctuating trend over the past five years. In December 2020, the payables turnover ratio was 17.19, indicating that the company was able to turn over its accounts payable approximately 17.19 times during that year.

Subsequently, there was a decline in the payables turnover ratio to 14.61 in December 2021, suggesting a decrease in the efficiency of managing its payables. However, the ratio increased to 16.24 by December 2022, indicating an improvement in the management of accounts payable.

In the following years, there was a slight decrease in the payables turnover ratio to 14.86 in December 2023 and 14.60 in December 2024. This suggests that the company's ability to efficiently pay off its suppliers slightly decreased during these periods.

Overall, while there have been fluctuations in the payables turnover ratio of American Airlines Group, it is important for the company to closely monitor and manage its accounts payable turnover to ensure effective cash flow management and maintain good relationships with its suppliers.