The AES Corporation (AES)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,164,000 | 10,069,000 | 8,430,000 | 6,967,000 | 7,840,000 |
| Payables | US$ in thousands | 2,199,000 | 1,730,000 | 1,153,000 | 1,156,000 | 1,311,000 |
| Payables turnover | 4.62 | 5.82 | 7.31 | 6.03 | 5.98 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,164,000K ÷ $2,199,000K
= 4.62
The payables turnover ratio of AES Corp. has exhibited fluctuations over the past five years. The trend indicates that the company has been taking longer or shorter periods to pay its suppliers, which may be influenced by changes in the company's purchasing policies, negotiation strategies with suppliers, or overall efficiency in managing its accounts payables.
In 2023, the payables turnover ratio decreased to 4.62, indicating that AES Corp. took longer to pay its suppliers compared to the previous year. This could be a result of changes in the company's payment terms or a reflection of a more relaxed approach to managing its payables.
Comparing the current ratio to the ratios in 2022 and 2021, AES Corp. has shown a general downward trend in paying its suppliers promptly. This may raise concerns about the company's liquidity position and its ability to maintain positive relationships with its suppliers. However, the recent ratio is still higher than the ratio in 2020, suggesting that AES Corp. has improved its payables turnover efficiency compared to that year.
Overall, AES Corp.'s payables turnover ratio has fluctuated over the past five years, indicating potential shifts in the company's approach to managing its accounts payables. It is important for investors and stakeholders to monitor these trends to assess the company's financial health and operational efficiency.