American Axle & Manufacturing (AXL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,455,200 | 5,097,500 | 4,433,900 | 4,128,100 | 5,628,300 |
| Payables | US$ in thousands | 773,900 | 734,000 | 612,800 | 578,900 | 623,500 |
| Payables turnover | 7.05 | 6.94 | 7.24 | 7.13 | 9.03 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,455,200K ÷ $773,900K
= 7.05
The payables turnover ratio for American Axle & Manufacturing Holdings Inc has fluctuated over the past five years. It decreased from 9.03 in 2019 to 7.13 in 2020, followed by a slight increase to 7.24 in 2021. However, in the latest two years, the payables turnover ratio has remained relatively stable at around the 7.00 mark, with values of 6.94 in 2022 and 7.05 in 2023.
A payables turnover ratio of 7.05 in 2023 implies that, on average, American Axle & Manufacturing Holdings Inc is paying its suppliers 7.05 times in a year. This suggests that the company efficiently manages its accounts payable by paying them off relatively quickly. A higher payables turnover ratio often indicates that the company is able to effectively manage its working capital and liquidity.
Overall, the trend in the payables turnover ratio for American Axle & Manufacturing Holdings Inc shows a relatively stable performance in managing its accounts payable over the past few years, with a slight decline followed by a stabilization around the 7.00 level.
Peer comparison
Dec 31, 2023