Curtiss-Wright Corporation (CW)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,608,610 | 2,391,180 | 2,160,120 | 2,149,140 | 1,550,110 |
| Payables | US$ in thousands | 247,185 | 243,833 | 266,525 | 211,640 | 201,237 |
| Payables turnover | 10.55 | 9.81 | 8.10 | 10.15 | 7.70 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,608,610K ÷ $247,185K
= 10.55
Curtiss-Wright Corporation's payables turnover ratio has shown a positive trend over the last five years, increasing from 7.70 in December 2020 to 10.55 in December 2024. This indicates that the company is effectively managing its accounts payable by paying off its suppliers more frequently each year. A higher payables turnover ratio generally suggests that the company is efficiently utilizing its suppliers' credit terms to finance its operations. However, it is important to note that an extremely high payables turnover ratio may also indicate a very short payment period, which could potentially strain relationships with suppliers. In this case, Curtiss-Wright Corporation's increasing payables turnover ratio reflects a positive trend in managing its payables effectively.
Peer comparison
Dec 31, 2024