Archrock Inc (AROC)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 618,971 | 574,333 | 545,568 | 480,287 | 606,173 |
| Payables | US$ in thousands | 57,567 | 61,026 | 64,324 | 38,920 | 30,819 |
| Payables turnover | 10.75 | 9.41 | 8.48 | 12.34 | 19.67 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $618,971K ÷ $57,567K
= 10.75
The payables turnover ratio for Archrock Inc has shown a declining trend over the past five years, decreasing from 19.67 in December 2020 to 10.75 in December 2024. This indicates that the company is taking longer to pay its suppliers or vendors. A lower payables turnover ratio could suggest potential liquidity issues or inefficiencies in managing payables. It is important for the company to monitor and manage its payables effectively to maintain healthy vendor relationships and optimize cash flow.
Peer comparison
Dec 31, 2024
Company name
Symbol
Payables turnover
Archrock Inc
AROC
10.75
Antero Midstream Partners LP
AM
—
DT Midstream Inc
DTM
2.45
Kinder Morgan Inc
KMI
3.77
Targa Resources Inc
TRGP
7.28
Williams Companies Inc
WMB
0.52