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