Amentum Holdings Inc. (AMTM)
Payables turnover
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,171,000 | 4,765,000 | 4,429,000 |
| Payables | US$ in thousands | 764,000 | — | — |
| Payables turnover | 10.70 | — | — |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,171,000K ÷ $764,000K
= 10.70
Based on the provided data for Amentum Holdings Inc., the payables turnover ratio was not available for December 31, 2022 and December 31, 2023, indicated as "—". However, as of September 30, 2024, the payables turnover ratio was calculated to be 10.70.
The payables turnover ratio measures how efficiently a company is managing its accounts payable by determining how many times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio typically indicates that the company is paying off its suppliers more frequently, which can be a positive sign of strong liquidity and efficient working capital management.
In this case, a payables turnover ratio of 10.70 as of September 30, 2024 suggests that Amentum Holdings Inc. is paying off its accounts payable approximately 10.70 times during that particular period. This may imply that the company has a good relationship with its suppliers and is effectively managing its payment obligations.
It is important for Amentum Holdings Inc. to monitor its payables turnover ratio over time and compare it to industry benchmarks to assess its performance in managing its accounts payable effectively and efficiently.
Peer comparison
Sep 30, 2024