Alamo Group Inc (ALG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,236,010 | 1,137,100 | 999,709 | 869,736 | 845,647 |
| Payables | US$ in thousands | 99,678 | 97,537 | 101,396 | 75,317 | 81,986 |
| Payables turnover | 12.40 | 11.66 | 9.86 | 11.55 | 10.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,236,010K ÷ $99,678K
= 12.40
Based on the data provided, Alamo Group Inc.'s payables turnover ratio has shown a fluctuating trend over the past five years. The company's payables turnover ratio increased from 10.32 in 2019 to 11.57 in 2020, indicating an improvement in the efficiency of paying its suppliers.
However, in 2021, there was a slight decrease in the payables turnover ratio to 9.86, which suggests that the company took longer to settle its accounts payable during that year. The ratio then rebounded in 2022 to 11.66, showing a recovery in the efficiency of managing its payables.
In 2023, the payables turnover ratio reached its highest point at 12.40, indicating that Alamo Group Inc. was more effective in paying its suppliers promptly, thus enhancing its liquidity position.
Overall, the increasing trend in the payables turnover ratio over the past few years suggests that Alamo Group Inc. has been managing its accounts payable efficiently and effectively utilizing its cash flow to settle its obligations in a timely manner.
Peer comparison
Dec 31, 2023