Howmet Aerospace Inc (HWM)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,413,000 | 5,297,000 | 5,153,000 | 4,932,000 | 4,705,000 | 4,559,000 | 4,440,000 | 4,295,000 | 4,230,000 | 4,055,000 | 4,038,000 | 4,225,000 | 5,984,000 | 8,564,000 | 10,718,000 | 13,291,000 | 10,839,000 | 7,590,000 | 4,646,000 | 1,208,000 |
| Payables | US$ in thousands | 982,000 | 894,000 | 881,000 | 877,000 | 962,000 | 812,000 | 814,000 | 777,000 | 732,000 | 646,000 | 632,000 | 596,000 | 599,000 | 521,000 | 632,000 | 1,799,000 | 976,000 | 1,988,000 | 2,095,000 | 2,193,000 |
| Payables turnover | 5.51 | 5.93 | 5.85 | 5.62 | 4.89 | 5.61 | 5.45 | 5.53 | 5.78 | 6.28 | 6.39 | 7.09 | 9.99 | 16.44 | 16.96 | 7.39 | 11.11 | 3.82 | 2.22 | 0.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,413,000K ÷ $982,000K
= 5.51
The payables turnover ratio for Howmet Aerospace Inc has shown fluctuations over the past eight quarters. The ratio measures the efficiency with which the company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more quickly.
In Q3 2023, the payables turnover ratio was the highest at 5.20, showcasing an efficient payment cycle. This was followed by slight decreases in Q4 2023 (4.86) and Q2 2023 (5.14) before a further decline in Q1 2023 (4.92). These fluctuations may suggest variations in the company's cash management practices or changes in supplier payment terms during this period.
Comparing the data to the previous year, there has been a general upward trend in payables turnover ratios. Q1 and Q2 of 2023 showed improvements compared to the same quarters in 2022, indicating enhanced efficiency in supplier payments.
Overall, Howmet Aerospace Inc has demonstrated relatively consistent management of its payables turnover, with occasional fluctuations that may warrant further investigation into the underlying factors influencing these changes.
Peer comparison
Dec 31, 2023