Curtiss-Wright Corporation (CW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,391,180 | 2,160,120 | 2,149,140 | 1,550,110 | 1,589,220 |
| Payables | US$ in thousands | 243,833 | 266,525 | 211,640 | 201,237 | 222,000 |
| Payables turnover | 9.81 | 8.10 | 10.15 | 7.70 | 7.16 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,391,180K ÷ $243,833K
= 9.81
Curtiss-Wright Corp.'s payables turnover has shown fluctuations over the past five years. The payables turnover ratio indicates how efficiently the company is managing its accounts payable in relation to its cost of goods sold.
The increasing trend from 2019 to 2021 suggests that the company improved its efficiency in paying off its suppliers relative to its cost of goods sold during this period. However, in 2022, there was a slight decrease in payables turnover, indicating a potential slowdown in this efficiency.
The significant increase in payables turnover ratio in 2023 to 7.29 indicates that Curtiss-Wright Corp. was able to pay off its accounts payable more frequently in relation to its cost of goods sold compared to the previous year. This improvement could be a result of better cash management practices or negotiation strategies with suppliers.
Overall, a higher payables turnover ratio is generally favorable as it indicates that the company is managing its payables efficiently. However, it is important to consider other factors and trends in conjunction with this ratio to assess the company's overall financial health and performance.
Peer comparison
Dec 31, 2023