Alaska Air Group Inc (ALK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,900,000 | 8,056,000 | 5,381,000 | 4,991,000 | 6,406,000 |
| Payables | US$ in thousands | 207,000 | 221,000 | 200,000 | 108,000 | 146,000 |
| Payables turnover | 38.16 | 36.45 | 26.90 | 46.21 | 43.88 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,900,000K ÷ $207,000K
= 38.16
The payables turnover ratio for Alaska Air Group Inc. has been consistently reported as 0.00 for the past five years. A payables turnover ratio of 0.00 indicates that the company is not effectively utilizing its accounts payable to pay its suppliers during the given period. This could suggest that Alaska Air Group Inc. may be holding onto its payables for extended periods or not actively managing its payment cycle.
A payables turnover ratio of 0.00 signifies a potential inefficiency in the company's working capital management. It could indicate that there may be delays in paying off its suppliers, which could impact its relationships with vendors and ultimately affect its cash flow and liquidity position. It is crucial for the company to assess and improve its payables turnover ratio to ensure effective management of its accounts payable and optimize its working capital efficiency.
Peer comparison
Dec 31, 2023