BWX Technologies Inc (BWXT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,875,720 | 1,680,900 | 1,573,800 | 1,548,120 | 1,361,060 |
| Payables | US$ in thousands | 126,651 | 127,112 | 189,842 | 184,392 | 170,678 |
| Payables turnover | 14.81 | 13.22 | 8.29 | 8.40 | 7.97 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,875,720K ÷ $126,651K
= 14.81
BWX Technologies Inc's payables turnover has shown an increasing trend over the past five years. The payables turnover ratio measures how efficiently a company manages its trade payables by indicating the number of times a company pays off its average accounts payable balance during a period.
The payables turnover ratio for BWX Technologies Inc was 14.81 in 2023, which increased from 13.22 in 2022, indicating an improvement in the company's ability to manage its trade payables. This suggests that the company is paying off its suppliers almost 15 times a year, which is a positive sign of efficient cash management.
The company has shown a consistent improvement in paying off its trade payables over the years, with ratios of 8.29 in 2021, 8.40 in 2020, and 7.97 in 2019. This trend indicates that BWX Technologies Inc has been effectively managing its supplier payments and possibly negotiating more favorable credit terms with its suppliers.
Overall, the increasing payables turnover ratio for BWX Technologies Inc reflects the company's efficient management of its trade payables, which is essential for maintaining good relationships with suppliers and optimizing cash flow.
Peer comparison
Dec 31, 2023