Leidos Holdings Inc (LDOS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,194,000 | 12,312,000 | 11,723,000 | 10,560,000 | 9,546,000 |
| Payables | US$ in thousands | 736,000 | 733,000 | 692,000 | 731,000 | 592,000 |
| Payables turnover | 17.93 | 16.80 | 16.94 | 14.45 | 16.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,194,000K ÷ $736,000K
= 17.93
Leidos Holdings Inc's payables turnover has shown a consistent trend of improvement over the past five years, indicating efficiency in managing its accounts payable. The payables turnover ratio increased from 16.12 in 2019 to 17.93 in 2023, reflecting the company's ability to pay its suppliers more frequently within a given period. This suggests that Leidos is effectively managing its trade credit obligations, potentially negotiating better payment terms with suppliers or enhancing its procurement processes. The higher payables turnover indicates that Leidos is efficiently utilizing its accounts payable and effectively managing its working capital, which can positively impact the company's cash flow and profitability. Overall, the increasing trend in payables turnover ratio suggests sound financial management practices within Leidos Holdings Inc.
Peer comparison
Dec 31, 2023