ArcBest Corp (ARCB)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,805,400 | 1,824,300 | 1,768,870 | 1,556,220 | 1,372,690 |
| Payables | US$ in thousands | 172,763 | 214,004 | 269,854 | 311,401 | 170,898 |
| Payables turnover | 10.45 | 8.52 | 6.55 | 5.00 | 8.03 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,805,400K ÷ $172,763K
= 10.45
To analyze ArcBest Corp's payables turnover based on the provided data, we observe a fluctuating trend over the years. The payables turnover ratio, which indicates how efficiently the company pays its suppliers, was 8.03 in December 2020. This ratio decreased to 5.00 by December 2021 but then increased to 6.55 at the end of 2022. In the subsequent years, there was a notable improvement as the payables turnover ratio reached 8.52 by December 2023 and further increased to 10.45 by December 2024.
The increasing trend in the payables turnover ratio from 2021 to 2024 suggests that ArcBest Corp has been managing its accounts payable more effectively, potentially negotiating better terms with suppliers or streamlining its payment processes. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which can improve its cash flow and financial health.
Overall, the improving trend in ArcBest Corp's payables turnover ratio reflects positively on its management of accounts payable and efficiency in managing supplier relationships. Monitoring this ratio over time can provide insights into the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024