General Dynamics Corporation (GD)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,454,000 | 3,290,000 | 3,295,000 | 3,135,000 | 3,070,000 |
| Payables | US$ in thousands | 3,344,000 | 3,095,000 | 3,398,000 | 3,167,000 | 2,952,000 |
| Payables turnover | 1.03 | 1.06 | 0.97 | 0.99 | 1.04 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,454,000K ÷ $3,344,000K
= 1.03
General Dynamics Corporation's payables turnover ratio indicates how efficiently the company manages its accounts payable. The trend over the past five years shows a slight fluctuation, with the ratio decreasing from 1.04 in 2020 to 0.99 in 2021, further dropping to 0.97 in 2022, but then increasing to 1.06 in 2023 and slightly dropping to 1.03 in 2024.
A high payables turnover ratio implies that the company is paying its suppliers quickly, which could indicate strong liquidity or beneficial relationships with vendors. Conversely, a low ratio may suggest that the company is taking longer to pay its bills, possibly to improve its own cash flow.
Overall, the variations in General Dynamics Corporation's payables turnover ratio may be influenced by factors such as changes in payment terms with suppliers, fluctuations in business operations, or adjustments to working capital management strategies. The company's management should continue monitoring this ratio to ensure efficient management of accounts payable and maintain healthy relationships with its suppliers.
Peer comparison
Dec 31, 2024