Hexcel Corporation (HXL)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,624,000 | 1,614,300 | 1,587,400 | 1,553,200 | 1,530,000 | 1,508,000 | 1,457,000 | 1,414,600 | 1,383,000 | 1,326,400 | 1,314,700 | 1,272,500 | 1,231,900 | 1,252,400 | 1,275,000 | 1,340,900 | 1,478,800 | 1,587,800 | 1,713,000 | 1,831,700 |
| Payables | US$ in thousands | 142,300 | 124,200 | 124,800 | 128,100 | 159,100 | 97,800 | 117,500 | 122,000 | 155,500 | 113,200 | 103,400 | 112,500 | 113,200 | 90,100 | 86,800 | 88,500 | 70,000 | 61,100 | 73,200 | 151,900 |
| Payables turnover | 11.41 | 13.00 | 12.72 | 12.12 | 9.62 | 15.42 | 12.40 | 11.60 | 8.89 | 11.72 | 12.71 | 11.31 | 10.88 | 13.90 | 14.69 | 15.15 | 21.13 | 25.99 | 23.40 | 12.06 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,624,000K ÷ $142,300K
= 11.41
The payables turnover ratio for Hexcel Corporation has fluctuated over the periods provided in the data. The ratio measures how quickly the company pays its suppliers. A higher turnover ratio generally indicates a more efficient management of payables.
Looking at the data, we see that the payables turnover ratio was at its highest in September 2020 at 25.99, indicating that, on average, Hexcel Corporation paid off its suppliers almost 26 times during that period. This suggests a strong ability to manage payables efficiently.
However, there has been a general downward trend in the payables turnover ratio since then, with fluctuations throughout the subsequent quarters. By December 2024, the ratio had declined to 11.41, indicating that the company was paying its suppliers around 11 times during that period.
It is important to analyze the reasons behind the fluctuations in the payables turnover ratio to determine if there are any significant changes in the company's payment practices or relationships with suppliers. Overall, the trend suggests a potential shift in Hexcel Corporation's payables management strategy over the years covered in the data.
Peer comparison
Dec 31, 2024