Fluor Corporation (FLR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,997,000 | 13,389,000 | 13,702,000 | 15,378,000 | 15,660,100 |
| Payables | US$ in thousands | 1,214,000 | 1,017,000 | 1,220,000 | 1,115,620 | 1,546,840 |
| Payables turnover | 12.35 | 13.17 | 11.23 | 13.78 | 10.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $14,997,000K ÷ $1,214,000K
= 12.35
To analyze Fluor Corporation's payables turnover, we calculate the payables turnover ratio by dividing the cost of goods sold by the average accounts payable for each year. The payables turnover ratio indicates how many times a company pays off its accounts payable within a given period. A higher payables turnover ratio typically suggests that the company is managing its payables efficiently.
Fluor Corporation's payables turnover has fluctuated over the past five years, ranging from 10.88 in 2019 to 13.17 in 2022. In 2023, the payables turnover ratio decreased to 12.35. Despite the decline from the previous year, the ratio remains relatively high, indicating that Fluor Corporation is still effectively managing its payables.
The trend of the payables turnover ratio suggests that Fluor Corporation has been able to maintain a consistent level of efficiency in paying off its accounts payable over the years. A high and stable payables turnover ratio may indicate strong supplier relationships, effective working capital management, and efficient cash flow utilization.
Overall, although there was a slight decrease in the payables turnover ratio in 2023, Fluor Corporation's consistent history of relatively high payables turnover ratios demonstrates its ability to efficiently manage its payables and maintain good relationships with suppliers.
Peer comparison
Dec 31, 2023