CVR Energy Inc (CVI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,405,000 | 7,974,000 | 9,766,000 | 7,024,000 | 4,119,000 |
| Payables | US$ in thousands | 538,000 | 530,000 | 497,000 | 409,000 | 282,000 |
| Payables turnover | 13.76 | 15.05 | 19.65 | 17.17 | 14.61 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,405,000K ÷ $538,000K
= 13.76
The payables turnover ratio of CVR Energy Inc has shown a general increasing trend from 14.61 in 2020 to 17.17 in 2021, further increasing to 19.65 in 2022. However, there was a slight decline in 2023 to 15.05, followed by a decrease to 13.76 in 2024.
The overall trend indicates that the company has been more efficient in managing its accounts payable in recent years, as higher payables turnover ratios suggest that CVR Energy has been paying off its suppliers more quickly. This may reflect favorable relationships with suppliers, effective working capital management, or improved operational efficiencies.
However, the decreasing trend in 2023 and 2024 could indicate a potential slowdown in the efficiency of payables turnover. It would be important to further analyze the reasons behind the decline in these two years to understand if it is a short-term fluctuation or a trend that requires attention.
Monitoring the payables turnover ratio over time can provide insights into the company's liquidity management, supplier relationships, and operational effectiveness in managing its accounts payable.
Peer comparison
Dec 31, 2024