Allegheny Technologies Incorporated (ATI)
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 | 3,759,500 | 3,675,000 | 3,693,500 | 3,623,700 | 3,437,000 | 3,238,200 | 2,950,300 | 2,722,600 | 2,644,500 | 1,965,300 | 1,942,000 | 2,358,200 | 2,584,600 | 3,469,600 | 3,786,700 | 3,713,700 | 3,768,300 | 3,811,100 | 3,811,700 | 3,739,500 |
| Payables | US$ in thousands | 524,800 | 435,000 | 467,700 | 447,500 | 553,300 | 410,200 | 421,900 | 396,100 | 375,500 | 290,700 | 265,800 | 324,800 | 290,600 | 240,700 | 275,800 | 424,600 | 521,200 | 415,800 | 420,600 | 455,300 |
| Payables turnover | 7.16 | 8.45 | 7.90 | 8.10 | 6.21 | 7.89 | 6.99 | 6.87 | 7.04 | 6.76 | 7.31 | 7.26 | 8.89 | 14.41 | 13.73 | 8.75 | 7.23 | 9.17 | 9.06 | 8.21 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,759,500K ÷ $524,800K
= 7.16
The payables turnover ratio for ATI Inc has shown fluctuations over the past eight quarters, ranging from a low of 5.64 in Q4 2022 to a high of 7.67 in Q3 2023. This ratio indicates how many times a company pays off its accounts payable within a given period.
A higher payables turnover ratio generally suggests that the company is able to efficiently manage its payables by paying them off quickly. Conversely, a lower ratio may indicate that the company is taking longer to settle its debts with suppliers.
In the case of ATI Inc, the payables turnover ratio has been relatively consistent in recent quarters, hovering around the 7 times range. This consistency suggests that the company has a stable payment cycle with its suppliers. However, it is important to further investigate the reasons behind any significant changes in the ratio to assess the company's cash flow management and financial health accurately.