ArcBest Corp (ARCB)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,824,300 | 1,768,870 | 1,556,220 | 1,372,690 | 1,447,800 |
| Payables | US$ in thousands | 214,004 | 269,854 | 311,401 | 170,898 | 134,374 |
| Payables turnover | 8.52 | 6.55 | 5.00 | 8.03 | 10.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,824,300K ÷ $214,004K
= 8.52
The payables turnover ratio for ArcBest Corp has been consistently reported as 0.00 for the years 2019, 2020, 2021, 2022, and 2023. This indicates that ArcBest Corp is not effectively managing its accounts payable turnover. A payables turnover ratio of 0.00 means that the company is not utilizing its accounts payable efficiently to support its operations. This could suggest extended payment terms with suppliers or inventory management issues. It may be beneficial for ArcBest Corp to review its payables management strategies to improve efficiency and optimize working capital utilization. Further investigation into the factors leading to a consistently low payables turnover would be recommended to address any underlying operational or financial challenges.
Peer comparison
Dec 31, 2023