Smith AO Corporation (AOS)
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 | 3,131,600 | 3,164,100 | 3,178,400 | 3,118,000 | 3,126,800 | 3,076,900 | 3,045,400 | 3,087,200 | 3,108,000 | 3,170,200 | 3,197,400 | 3,110,700 | 2,941,700 | 2,806,400 | 2,678,400 | 2,545,300 | 2,469,600 | 2,425,100 | 2,417,500 | 2,474,500 |
| Payables | US$ in thousands | 588,700 | 555,900 | 574,600 | 557,700 | 600,400 | 561,800 | 545,100 | 550,400 | 625,800 | 595,600 | 624,500 | 658,700 | 745,900 | 649,600 | 612,400 | 547,400 | 595,200 | 516,900 | 435,700 | 442,000 |
| Payables turnover | 5.32 | 5.69 | 5.53 | 5.59 | 5.21 | 5.48 | 5.59 | 5.61 | 4.97 | 5.32 | 5.12 | 4.72 | 3.94 | 4.32 | 4.37 | 4.65 | 4.15 | 4.69 | 5.55 | 5.60 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,131,600K ÷ $588,700K
= 5.32
Smith AO Corporation's payables turnover has been relatively stable over the past few years, ranging from a low of 3.94 times in December 2021 to a high of 5.69 times in September 2024.
The payables turnover ratio indicates how efficiently the company is managing its accounts payable. A higher ratio typically indicates that the company is paying off its suppliers more frequently, which can be a positive sign of good financial health.
In Smith AO Corporation's case, the payables turnover has shown a slight fluctuation but has generally remained within a reasonable range, suggesting that the company is effectively managing its payable obligations. The consistent values above 4.0 indicate that the company is turning over its payables multiple times throughout the year, which may indicate good liquidity and strong supplier relationships.
Overall, the payables turnover trend for Smith AO Corporation appears to be stable, reflecting sound financial management in terms of managing its accounts payable efficiently.
Peer comparison
Dec 31, 2024