AdvanSix Inc (ASIX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,467,980 | 1,722,530 | 1,494,190 | 1,095,740 | 1,248,960 |
| Payables | US$ in thousands | 259,068 | 272,740 | 221,234 | 190,227 | 205,911 |
| Payables turnover | 5.67 | 6.32 | 6.75 | 5.76 | 6.07 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,467,980K ÷ $259,068K
= 5.67
The payables turnover ratio for AdvanSix Inc has shown a consistent trend over the past five years, with values ranging from 5.28 to 6.38. This ratio indicates the company's efficiency in managing its accounts payable by measuring how many times the company pays off its suppliers within a given period.
A higher payables turnover ratio signifies that the company is paying its suppliers more frequently, which may indicate strong liquidity and effective cash flow management. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, potentially straining supplier relationships or missing out on early payment discounts.
In this case, AdvanSix Inc's payables turnover ratio has remained relatively stable over the years, indicating consistent and efficient management of accounts payable. However, further analysis in conjunction with other financial metrics would provide a more comprehensive assessment of the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023