Arch Resources Inc (ARCH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,639,100 | 2,651,640 | 1,821,730 | 1,653,680 | 2,143,120 |
| Payables | US$ in thousands | 205,001 | 211,848 | 131,986 | 103,743 | 133,060 |
| Payables turnover | 12.87 | 12.52 | 13.80 | 15.94 | 16.11 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,639,100K ÷ $205,001K
= 12.87
The payables turnover ratio for Arch Resources Inc has shown a decreasing trend over the past five years. In 2019, the ratio was at its highest at 16.11, indicating that the company took approximately 16.11 days to pay off its accounts payable. However, this ratio has been gradually declining, reaching 15.94 in 2020, 13.80 in 2021, and further decreasing to 12.52 in 2022. In the most recent period, as of December 31, 2023, the payables turnover ratio was 12.87.
This decreasing trend suggests that the company may be taking longer to pay off its suppliers or managing its payables less efficiently over time. A lower payables turnover ratio may indicate that the company is holding onto its cash for longer periods, potentially for investment or financing purposes. Further analysis of the company's payables management practices and cash flow situation would be necessary to fully assess the implications of this trend.
Peer comparison
Dec 31, 2023