Huntington Ingalls Industries Inc (HII)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,082,000 | 1,150,000 | 1,064,000 | 984,000 | 973,000 |
| Payables | US$ in thousands | 598,000 | 554,000 | 642,000 | 603,000 | 460,000 |
| Payables turnover | 1.81 | 2.08 | 1.66 | 1.63 | 2.12 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,082,000K ÷ $598,000K
= 1.81
The payables turnover ratio of Huntington Ingalls Industries Inc has exhibited some fluctuations over the past five years. In December 31, 2020, the payables turnover ratio was 2.12, indicating that the company was able to convert its accounts payable into cash 2.12 times during that year.
However, the ratio decreased to 1.63 by December 31, 2021, suggesting that the company took longer to pay off its suppliers compared to the previous year. This trend continued into 2022, with a slight increase to 1.66 in payables turnover.
In December 31, 2023, there was a notable improvement in the payables turnover ratio, reaching 2.08. This indicates a more efficient management of accounts payable, with the company paying off its suppliers more frequently during that year.
By December 31, 2024, the payables turnover ratio decreased to 1.81, showing a slight decline in the company's ability to convert its payables into cash efficiently.
Overall, while there have been fluctuations in the payables turnover ratio of Huntington Ingalls Industries Inc over the past five years, it is important to monitor this ratio to ensure effective management of accounts payable and cash flow within the company.
Peer comparison
Dec 31, 2024