American Airlines Group (AAL)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	35,852,000	35,971,000	36,075,000	35,419,000	34,971,000	34,869,000	34,956,000	35,822,000	34,909,000	33,577,000	31,123,000	28,094,000	25,897,000	22,892,000	21,215,000	18,911,000	20,614,000	16,253,000	18,408,000	21,509,000
Payables	US$ in thousands	2,455,000	2,623,000	3,016,000	2,927,000	2,353,000	2,123,000	2,406,000	2,455,000	2,149,000	2,117,000	2,733,000	2,546,000	1,772,000	1,835,000	2,172,000	1,624,000	1,196,000	1,077,000	1,175,000	1,648,000
Payables turnover		14.60	13.71	11.96	12.10	14.86	16.42	14.53	14.59	16.24	15.86	11.39	11.03	14.61	12.48	9.77	11.64	17.24	15.09	15.67	13.05

December 31, 2024 calculation

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

The payables turnover ratio measures how efficiently a company pays its suppliers by comparing its cost of goods sold with its average accounts payable balance. For American Airlines Group, the payables turnover has shown some fluctuations over the analyzed periods.

The company's payables turnover ratio ranged from a low of 9.77 in June 2021 to a high of 17.24 in December 2020. This variability suggests changes in the company's payment practices and relationships with suppliers during the periods examined.

In general, a higher payables turnover ratio indicates that the company is efficiently paying its suppliers, while a lower ratio may suggest a longer payment cycle or potential liquidity issues. American Airlines Group's payables turnover has generally been in the double digits, indicating a relatively efficient payment system during most quarters.

The payables turnover ratio should be interpreted in conjunction with other financial ratios and metrics to gain a comprehensive understanding of American Airlines Group's financial health and operational efficiency. Additionally, trend analysis over multiple periods can provide insights into the company's evolving payment practices and financial management strategies.