Astec Industries Inc (ASTE)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,295,100 | 1,316,900 | 1,313,500 | 1,295,500 | 1,244,000 | 1,195,500 | 1,144,200 | 1,089,300 | 1,078,800 | 1,007,543 | 986,155 | 980,795 | 986,200 | 1,069,513 | 1,089,766 | 1,056,678 | 1,034,973 | 1,096,725 | 1,042,589 | 1,092,657 |
| Payables | US$ in thousands | 116,900 | 114,300 | 109,200 | 112,000 | 107,200 | 105,300 | 104,300 | 99,700 | 82,200 | 77,900 | 78,500 | 68,100 | 52,700 | 53,141 | 48,242 | 64,130 | 57,200 | 59,886 | 70,338 | 76,451 |
| Payables turnover | 11.08 | 11.52 | 12.03 | 11.57 | 11.60 | 11.35 | 10.97 | 10.93 | 13.12 | 12.93 | 12.56 | 14.40 | 18.71 | 20.13 | 22.59 | 16.48 | 18.09 | 18.31 | 14.82 | 14.29 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,295,100K ÷ $116,900K
= 11.08
The payables turnover ratio reflects how efficiently Astec Industries Inc. is managing its accounts payable.
Based on the data provided, the payables turnover ratio has been consistently above 8 times over the past eight quarters, indicating that the company is paying off its suppliers relatively quickly. A higher payables turnover ratio suggests that the company is efficiently using its credit terms with suppliers and is effectively managing its working capital.
The trend of the payables turnover ratio demonstrates a slight fluctuation quarter over quarter, with values ranging from 8.57 to 9.65. While there is some variability, the overall pattern suggests that Astec Industries Inc. has been able to consistently handle its payables effectively over the past two years.
It's crucial to note that a high payables turnover ratio may also indicate that the company is taking advantage of trade credit terms or could potentially be facing liquidity issues. Therefore, further analysis and comparison with industry benchmarks may provide a more comprehensive understanding of Astec Industries Inc.'s payables management efficiency.
Peer comparison
Dec 31, 2023