Aptiv PLC (APTV)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,646,000 | 19,193,000 | 16,908,000 | 15,056,000 | 11,126,000 |
| Payables | US$ in thousands | 2,870,000 | 3,151,000 | 3,150,000 | 2,953,000 | 2,571,000 |
| Payables turnover | 6.50 | 6.09 | 5.37 | 5.10 | 4.33 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $18,646,000K ÷ $2,870,000K
= 6.50
The payables turnover ratio for Aptiv PLC has shown a consistent increase over the years, indicating an improvement in the company's ability to manage its accounts payables efficiently.
In December 31, 2020, the payables turnover ratio was 4.33, which means that the company's payables were being turned over approximately 4.33 times during the year. This ratio increased to 5.10 by December 31, 2021, showing a significant improvement in the management of payables.
By December 31, 2022, the payables turnover ratio further improved to 5.37, indicating that the company was able to settle its accounts payables even more efficiently. The trend continued with ratios of 6.09 on December 31, 2023, and 6.50 on December 31, 2024.
Overall, the increasing trend in the payables turnover ratio reflects positively on Aptiv PLC's financial health, suggesting that the company is effectively managing its payables and paying off its obligations in a timely manner. This improvement may indicate strong supplier relationships, effective cash flow management, and potential cost savings from early payment discounts.
Peer comparison
Dec 31, 2024