Leidos Holdings Inc (LDOS)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 13,864,000 13,194,000 12,312,000 11,723,000 10,560,000
Payables US$ in thousands 705,000 736,000 733,000 692,000 731,000
Payables turnover 19.67 17.93 16.80 16.94 14.45

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $13,864,000K ÷ $705,000K
= 19.67

Leidos Holdings Inc's payables turnover has shown a positive trend over the past five years, increasing from 14.45 in 2020 to 19.67 in 2024. This indicates that the company is managing its accounts payable efficiently and taking fewer days to pay its suppliers. A higher payables turnover ratio suggests that the company is able to negotiate favorable payment terms with its suppliers or is efficiently managing its working capital. Overall, the increasing trend in payables turnover indicates good liquidity management by Leidos Holdings Inc.