GE Aerospace (GE)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,328,000 | 19,963,000 | 20,628,000 | 22,187,000 | 21,974,000 | 23,045,000 | 23,904,000 | 24,406,000 | 26,758,000 | 25,629,000 | 38,717,000 | 52,325,000 | 63,260,000 | 64,692,000 | 67,315,000 | 70,730,000 | 74,100,000 | 81,826,000 | 84,640,000 | 91,652,000 |
| Payables | US$ in thousands | 7,909,000 | 7,829,000 | 7,707,000 | 10,486,000 | 7,516,000 | 10,693,000 | 10,538,000 | 10,049,000 | 12,479,000 | — | — | — | 10,970,000 | — | — | — | — | 13,941,000 | 13,469,000 | 15,212,000 |
| Payables turnover | 1.56 | 2.55 | 2.68 | 2.12 | 2.92 | 2.16 | 2.27 | 2.43 | 2.14 | — | — | — | 5.77 | — | — | — | — | 5.87 | 6.28 | 6.02 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,328,000K ÷ $7,909,000K
= 1.56
The payables turnover ratio for GE Aerospace is a measure of how efficiently the company is managing its accounts payable. The ratio is calculated by dividing the total purchases made on credit by the average accounts payable during the period.
Based on the data provided, the payables turnover for GE Aerospace has been relatively stable between March 31, 2020, and September 30, 2021, ranging from 5.87 to 6.28. However, there is a significant decline in the payables turnover ratio by December 31, 2021, to 5.77, indicating a potential slowdown in the company's ability to convert its accounts payable into cash.
The payables turnover ratio further deteriorates in the following periods, dropping to 2.14 by December 31, 2022, and fluctuating around the range of 2.12 to 2.68 until September 30, 2024. These lower values suggest that GE Aerospace is taking longer to pay its suppliers, which may lead to strained supplier relationships and potential cash flow issues.
Overall, the declining trend in the payables turnover ratio for GE Aerospace indicates a slowdown in the company's ability to efficiently manage its accounts payable and convert them into cash, which can have implications for its liquidity and financial health.
Peer comparison
Dec 31, 2024