The AES Corporation (AES)
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 | 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 | 7,840,000 | 7,945,000 | 8,187,000 | 8,143,000 |
| Payables | US$ in thousands | 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 | 1,311,000 | 1,237,000 | 1,234,000 | 1,224,000 |
| Payables turnover | 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 | 5.98 | 6.42 | 6.63 | 6.65 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,164,000K ÷ $2,199,000K
= 4.62
AES Corp.'s payables turnover has been fluctuating over the past eight quarters. The payables turnover ratio measures how efficiently a company is able to manage its suppliers by paying its obligations. Generally, a higher payables turnover ratio indicates that the company is paying its suppliers more quickly.
Looking at the data, we can observe that the payables turnover ratio has shown variability, ranging from 4.62 to 6.90 over the past eight quarters. In the last quarter of 2023, the payables turnover ratio was 4.62, which increased gradually in the next three quarters, reaching a peak of 6.90 in Q1 2023, before showing a slight decline in Q2 and Q3 of 2023.
Overall, the trend indicates that AES Corp. has been able to improve its efficiency in managing its payables over the past quarters, with a generally increasing trend in the payables turnover ratio. This could be seen as a positive sign of effective supplier management and liquidity management within the company. However, it is important to continue monitoring this metric to ensure consistency and sustainability in the future.