Avis Budget Group Inc (CAR)

Payables turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 3,374,000 2,420,000 2,678,000 2,472,000 3,643,000
Payables US$ in thousands 487,000 466,000 407,000 394,000 378,000
Payables turnover 6.93 5.19 6.58 6.27 9.64

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,374,000K ÷ $487,000K
= 6.93

The payables turnover ratio for Avis Budget Group Inc has been calculated as 0.00 for the past five years. This indicates that the company is not efficiently managing its accounts payable during these periods. A payables turnover ratio of 0.00 suggests that the company is taking too long to pay its suppliers, which may impact relationships with vendors and result in potential cash flow challenges. It is important for the company to improve its payables turnover ratio to enhance its liquidity and operational efficiency. Further analysis of the company's payables management practices and payment terms with suppliers is recommended to address this issue and improve overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Payables turnover
Avis Budget Group Inc
CAR
6.93
Hertz Global Holdings Inc
HTZ
Ryder System Inc
R
1.81