Hexcel Corporation (HXL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,530,100	1,383,000	1,235,400	1,443,600	1,880,900
Payables	US$ in thousands	159,100	155,500	113,200	70,000	157,600
Payables turnover		9.62	8.89	10.91	20.62	11.93

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,530,100K ÷ $159,100K
= 9.62

Hexcel Corp.'s payables turnover ratio has displayed fluctuating trends over the past five years. In 2023, the company's payables turnover ratio stood at 8.52, indicating that the company paid its suppliers approximately 8.52 times during the year. This represents a slight increase from the previous year, where the ratio was 7.85.

Although the payables turnover ratio decreased in 2022, it remained relatively strong compared to the ratios in 2021 and 2019. The company's ability to efficiently manage its accounts payable improved significantly in 2020 when the ratio spiked to 18.04, indicating that the company was paying its suppliers almost 18 times during that year.

Overall, Hexcel Corp.'s payables turnover ratio has shown variability, with some years demonstrating better efficiency in managing payables than others. It is important for the company to closely monitor this ratio to ensure effective management of its trade credit obligations.