The AES Corporation (AES)
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 | 9,964,000 | 9,896,000 | 9,845,000 | 9,985,000 | 10,164,000 | 10,187,000 | 10,406,000 | 10,392,000 | 10,069,000 | 9,783,000 | 9,324,000 | 8,781,000 | 8,430,000 | 7,873,000 | 7,386,000 | 7,107,000 | 6,967,000 | 7,184,000 | 7,319,000 | 7,607,000 |
| Payables | US$ in thousands | 1,654,000 | 1,965,000 | 1,869,000 | 2,064,000 | 2,199,000 | 1,641,000 | 1,583,000 | 1,505,000 | 1,730,000 | 1,688,000 | 1,685,000 | 1,288,000 | 1,153,000 | 1,015,000 | 948,000 | 832,000 | 1,156,000 | 1,103,000 | 1,207,000 | 1,069,000 |
| Payables turnover | 6.02 | 5.04 | 5.27 | 4.84 | 4.62 | 6.21 | 6.57 | 6.90 | 5.82 | 5.80 | 5.53 | 6.82 | 7.31 | 7.76 | 7.79 | 8.54 | 6.03 | 6.51 | 6.06 | 7.12 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,964,000K ÷ $1,654,000K
= 6.02
The payables turnover ratio for The AES Corporation has shown fluctuations over the reported periods. The ratio indicates the efficiency with which the company is able to manage its accounts payables. A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly.
From March 2020 to June 2020, there was a decrease in the payables turnover ratio from 7.12 to 6.06, indicating a decrease in the speed of paying off suppliers. The ratio then increased to 8.54 by March 2021, which suggests an improvement in managing payables. However, there was a gradual decline in the ratio until December 2021, reaching 7.31.
Throughout 2022 and 2023, the payables turnover ratio fluctuated within the range of 5.53 to 6.90. This indicates some variability in the company's ability to manage its payables efficiently during those periods.
By the end of 2024, the payables turnover ratio was reported as 6.02, which showed a slight increase compared to the previous periods. It is important for the company to closely monitor its payables turnover ratio to ensure a balance between timely payments to suppliers and efficient management of working capital.