Hexcel Corporation (HXL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,624,100 | 1,530,100 | 1,383,000 | 1,235,400 | 1,443,600 |
| Payables | US$ in thousands | 142,300 | 159,100 | 155,500 | 113,200 | 70,000 |
| Payables turnover | 11.41 | 9.62 | 8.89 | 10.91 | 20.62 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,624,100K ÷ $142,300K
= 11.41
The payables turnover ratio for Hexcel Corporation has displayed a fluctuating trend over the past five years, as evidenced by the following values: 20.62 in December 31, 2020, decreasing to 10.91 by December 31, 2021, further dropping to 8.89 as of December 31, 2022, slightly increasing to 9.62 by December 31, 2023, and rising to 11.41 as of December 31, 2024.
A high payables turnover ratio generally indicates that the company is efficiently managing its accounts payable by paying suppliers quickly. In contrast, a lower ratio may suggest that the company is taking longer to pay its creditors, potentially straining supplier relationships or indicating liquidity issues.
Based on the trend observed for Hexcel Corporation, the decreasing payables turnover ratio from 2020 to 2022 indicates a gradual slowdown in the rate at which the company is paying its suppliers. However, the subsequent increase in the ratio in 2023 and 2024 suggests an improvement in payables management efficiency.
Overall, further investigation into the factors influencing the variations in the payables turnover ratio is recommended to gain deeper insights into Hexcel Corporation's supplier payment practices and financial management strategies.
Peer comparison
Dec 31, 2024