American Airlines Group (AAL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 34,971,000 | 34,907,000 | 25,895,000 | 20,562,000 | 27,870,000 |
| Payables | US$ in thousands | 2,353,000 | 2,149,000 | 1,772,000 | 1,196,000 | 2,062,000 |
| Payables turnover | 14.86 | 16.24 | 14.61 | 17.19 | 13.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $34,971,000K ÷ $2,353,000K
= 14.86
The payables turnover ratio for American Airlines Group Inc has been consistently reported as 0.00 for the past five years, from 2019 to 2023. A payables turnover ratio of 0.00 indicates that the company is not efficiently utilizing its accounts payables to support its operations. This could be due to various reasons such as extended payment terms with suppliers, delays in paying off obligations, or changes in the company's business model that affect its payables turnover. It is essential for the company to analyze the reasons behind the consistently low payables turnover ratio and consider strategies to improve efficiency in managing its accounts payables in order to enhance its overall financial performance.
Peer comparison
Dec 31, 2023