AeroVironment Inc (AVAV)

The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could signify strong supplier relationships and effective cash management.

Based on the data provided for AeroVironment Inc over the past five years, we observe fluctuations in the payables turnover ratio. In April 2024, the payables turnover ratio was 11.70, a decrease from the previous year's ratio of 22.74 in April 2023. This decline suggests that AeroVironment Inc took longer to pay off its suppliers in 2024 compared to 2023, which may indicate a shift in payment practices or cash flow management.

Comparing the payables turnover ratios over the five-year period, we see that the ratios have generally been above 10, indicating that AeroVironment Inc tends to manage its accounts payable efficiently by paying off its suppliers multiple times throughout the year. However, the fluctuations in the ratios from year to year warrant further investigation into the company's payment policies, supplier relationships, and overall financial health.

In conclusion, the payables turnover ratio for AeroVironment Inc has shown variability over the past five years, with the most recent ratio signaling a decrease in the frequency of payments to suppliers. Further analysis and comparison with industry benchmarks would provide additional insights into the company's financial performance and working capital management.

Peer comparison

Apr 30, 2024