The AES Corporation (AES)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 9,964,000 10,164,000 10,069,000 8,430,000 6,967,000
Payables US$ in thousands 1,654,000 2,199,000 1,730,000 1,153,000 1,156,000
Payables turnover 6.02 4.62 5.82 7.31 6.03

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $9,964,000K ÷ $1,654,000K
= 6.02

The payables turnover for The AES Corporation has shown fluctuations over the years. In 2020, the company had a payables turnover ratio of 6.03, indicating that it took approximately 60 days to pay off its accounts payable. This ratio increased to 7.31 in 2021, suggesting that the company was able to manage its payables more efficiently, taking around 50 days to pay off its suppliers. However, in 2022, the payables turnover ratio decreased to 5.82, implying a longer payment period of approximately 63 days. The trend continued in 2023, with a further drop in the payables turnover to 4.62, suggesting the company was taking around 79 days to settle its payables. By 2024, the payables turnover ratio recovered slightly to 6.02, but it still remained below the levels seen in 2021. Overall, the fluctuating payables turnover ratios indicate variations in the company's ability to manage its accounts payable effectively over the years, impacting its cash flow and working capital management.