Howmet Aerospace Inc (HWM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,413,000 | 4,705,000 | 4,230,000 | 4,631,000 | 13,657,000 |
| Payables | US$ in thousands | 982,000 | 962,000 | 732,000 | 599,000 | 976,000 |
| Payables turnover | 5.51 | 4.89 | 5.78 | 7.73 | 13.99 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,413,000K ÷ $982,000K
= 5.51
The payables turnover ratio for Howmet Aerospace Inc has fluctuated over the past five years. In 2023, the payables turnover ratio was 4.86, which indicates that the company paid its suppliers approximately 4.86 times over the year.
Compared to the previous year, the payables turnover increased from 4.27 in 2022 to 4.86 in 2023, suggesting that the company managed to pay its suppliers more frequently during the year. This could be a positive sign as it may indicate improved efficiency in managing accounts payable.
However, the payables turnover in 2023 was lower than in 2020 and 2019, where it stood at 6.47 and 5.50, respectively. A decreasing trend in payables turnover may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or indicate liquidity constraints.
Overall, the payables turnover ratio for Howmet Aerospace Inc has shown variability over the years, and it is essential for the company to closely monitor this ratio to ensure efficient management of its accounts payable and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023