Allegheny Technologies Incorporated (ATI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,759,500 | 3,437,000 | 2,644,500 | 3,250,200 | 3,768,500 |
| Payables | US$ in thousands | 524,800 | 553,300 | 375,500 | 290,600 | 521,200 |
| Payables turnover | 7.16 | 6.21 | 7.04 | 11.18 | 7.23 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,759,500K ÷ $524,800K
= 7.16
ATI Inc's payables turnover ratio has fluctuated over the past five years. The ratio indicates how many times the company pays its suppliers within a specific period. A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently by paying off its suppliers quickly.
In 2023, ATI Inc's payables turnover ratio was 6.42, which is higher compared to the previous year's ratio of 5.64. This increase indicates that the company paid its suppliers more frequently in 2023, possibly indicating improved liquidity or better negotiation terms with suppliers.
Compared to 2021 and 2019, where the payables turnover ratios were 6.57 and 6.69, respectively, the 2023 ratio of 6.42 is slightly lower. This suggests that ATI Inc took slightly longer to pay its suppliers in 2023 relative to these years.
However, in 2020, the payables turnover ratio was significantly higher at 9.25, indicating that ATI Inc paid its suppliers much more frequently that year. This could be due to various factors such as changes in the company's payment policies or working capital management.
Overall, ATI Inc's payables turnover ratio has varied over the years, reflecting the company's changing payment patterns and relationship with suppliers. It would be important to analyze the underlying reasons for the fluctuations in the ratio to assess the company's overall financial health and efficiency in managing its payables.