Altria Group (MO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,200,000 | 6,331,000 | 6,990,000 | 13,558,000 | 7,415,000 |
| Payables | US$ in thousands | 582,000 | 552,000 | 449,000 | 380,000 | 325,000 |
| Payables turnover | 17.53 | 11.47 | 15.57 | 35.68 | 22.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,200,000K ÷ $582,000K
= 17.53
The payables turnover ratio for Altria Group Inc. has been showing a declining trend over the past five years. The ratio decreased from 21.80 in 2019 to 10.68 in 2023. This indicates that the company took longer to pay off its suppliers and vendors in 2023 compared to previous years. A lower payables turnover ratio may suggest that Altria Group Inc. is managing its payables less efficiently or experiencing challenges in managing its cash flow effectively. Further analysis of the company's payment policies and vendor relationships may be required to better understand the reasons behind this trend and its potential implications for the company's financial health.
Peer comparison
Dec 31, 2023