AAON Inc (AAON)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 971,282 | 933,042 | 888,799 | 844,153 | 779,971 | 697,932 | 607,795 | 537,960 | 474,130 | 442,247 | 433,138 | 417,541 | 431,020 | 439,222 | 426,691 | 423,506 | 321,947 | 308,602 | 222,683 | 133,046 |
| Payables | US$ in thousands | 27,484 | 29,917 | 32,210 | 29,561 | 45,513 | 48,613 | 36,189 | 35,796 | 29,020 | 25,940 | 21,250 | 17,615 | 12,447 | 16,038 | 19,698 | 13,501 | 11,759 | 11,118 | 7,885 | 5,947 |
| Payables turnover | 35.34 | 31.19 | 27.59 | 28.56 | 17.14 | 14.36 | 16.80 | 15.03 | 16.34 | 17.05 | 20.38 | 23.70 | 34.63 | 27.39 | 21.66 | 31.37 | 27.38 | 27.76 | 28.24 | 22.37 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $971,282K ÷ $27,484K
= 35.34
AAON Inc.'s payables turnover has been consistently increasing over the quarters, indicating a more efficient management of its accounts payable during the fourth quarter of 2022 to the fourth quarter of 2023. The payables turnover ratio measures how many times a company pays off its average accounts payable balance during a period.
The payables turnover ratio improved from 14.31 in Q4 2022 to 28.00 in Q4 2023, showcasing a significant enhancement in the company's ability to manage its payables efficiently. This suggests that AAON Inc. is effectively managing its cash flow and working capital by paying off its suppliers at a faster rate.
Overall, the trend of increasing payables turnover is a positive indicator of AAON Inc.'s financial health and operational efficiency in terms of managing its accounts payable. A higher payables turnover ratio signifies that the company is utilizing its credit terms effectively and potentially negotiating better terms with its suppliers.
Peer comparison
Dec 31, 2023