AAON Inc (AAON)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 971,282 | 779,971 | 474,130 | 431,020 | 409,619 |
| Payables | US$ in thousands | 27,484 | 45,513 | 29,020 | 12,447 | 11,759 |
| Payables turnover | 35.34 | 17.14 | 16.34 | 34.63 | 34.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $971,282K ÷ $27,484K
= 35.34
The payables turnover ratio of AAON Inc. has fluctuated over the past five years. In 2023, the payables turnover ratio increased significantly to 28.00, indicating that AAON Inc. was able to pay its suppliers approximately 28 times during the year. This substantial increase from the previous year's ratio of 14.31 suggests that the company may have improved its efficiency in managing its accounts payable.
In 2022 and 2021, the payables turnover ratios were relatively stable at 14.31 and 13.67, respectively. This consistency implies that AAON Inc. maintained a consistent ability to settle its payables during these years.
The payables turnover ratio exhibited a notable spike in 2020 to 28.82, signaling that the company accelerated its payments to suppliers compared to the previous year. However, this spike was followed by a slight decline in 2019 to 29.76, indicating a minor decrease in the rate at which AAON Inc. paid its suppliers.
Overall, the fluctuation in the payables turnover ratio of AAON Inc. reflects variations in the company's payment practices and efficiency in managing its accounts payable over the past five years.
Peer comparison
Dec 31, 2023