Frontier Communications Parent Inc (FYBR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,190,000 | 4,408,000 | 2,362,000 | 3,227,000 | 3,740,000 |
| Payables | US$ in thousands | 857,000 | 1,200,000 | 535,000 | 540,000 | 437,000 |
| Payables turnover | 4.89 | 3.67 | 4.41 | 5.98 | 8.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,190,000K ÷ $857,000K
= 4.89
Frontier Communications Parent Inc's payables turnover ratio has fluctuated over the past five years. In 2023, the payables turnover ratio was 4.89, indicating that the company paid off its accounts payable approximately 4.89 times during the year. This represents an improvement from the previous year, where the ratio was 3.67.
Comparing the current ratio to historical data, it appears that Frontier Communications Parent Inc's payables turnover has been trending downward since 2019 when it was at its highest of 8.56. A lower payables turnover ratio could suggest that the company is taking longer to pay its suppliers, which may indicate potential liquidity issues or difficulties in managing working capital efficiently.
It is important for the company to closely monitor its payables turnover ratio to ensure that it is maintaining a healthy balance between payment terms and cash flow management. Additionally, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Frontier Communications Parent Inc's payables management performance.
Peer comparison
Dec 31, 2023