Astec Industries Inc (ASTE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,295,100 | 1,244,000 | 1,078,800 | 986,200 | 1,143,540 |
| Payables | US$ in thousands | 116,900 | 107,200 | 82,200 | 52,700 | 57,200 |
| Payables turnover | 11.08 | 11.60 | 13.12 | 18.71 | 19.99 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,295,100K ÷ $116,900K
= 11.08
The payables turnover ratio for Astec Industries Inc. has shown a decreasing trend over the past five years. It decreased from 16.27 in 2019 to 8.62 in 2023. This indicates that the company is taking longer to pay off its trade payables in recent years compared to previous years. A lower payables turnover ratio may suggest that the company is holding onto its payables for a longer period, which could potentially lead to strained relationships with suppliers or missed opportunities for early payment discounts. It is important for the company to closely monitor and manage its payables turnover to ensure efficient working capital management and healthy supplier relationships.
Peer comparison
Dec 31, 2023