Altria Group (MO)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,200,000 | 6,239,000 | 6,491,000 | 6,221,000 | 6,182,000 | 6,270,000 | 6,414,000 | 6,742,000 | 6,990,000 | 12,178,000 | 12,532,000 | 11,123,000 | 10,940,000 | 9,652,000 | 8,151,000 | 8,261,000 | 7,349,000 | 7,971,000 | 8,081,000 | 7,957,000 |
| Payables | US$ in thousands | 582,000 | 490,000 | 454,000 | 412,000 | 552,000 | 417,000 | 396,000 | 379,000 | 449,000 | 266,000 | 260,000 | 271,000 | 380,000 | 348,000 | 273,000 | 278,000 | 325,000 | 246,000 | 224,000 | 205,000 |
| Payables turnover | 17.53 | 12.73 | 14.30 | 15.10 | 11.20 | 15.04 | 16.20 | 17.79 | 15.57 | 45.78 | 48.20 | 41.04 | 28.79 | 27.74 | 29.86 | 29.72 | 22.61 | 32.40 | 36.08 | 38.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,200,000K ÷ $582,000K
= 17.53
The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how quickly it pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be a sign of good liquidity management or strong bargaining power with suppliers.
Analyzing the payables turnover ratio of Altria Group Inc. over the past eight quarters, we can see fluctuations in the ratio. In Q1 2022, the payables turnover ratio was 18.36, indicating that the company paid its suppliers approximately 18.36 times over the year. This ratio has gradually declined in subsequent quarters, reaching its lowest point in Q4 2023 at 10.68.
The decreasing trend in the payables turnover ratio may suggest that Altria Group Inc. is taking longer to pay its suppliers as compared to previous quarters. This could be due to various factors, such as changes in payment terms or cash flow constraints. However, it's important to note that a low payables turnover ratio may also be a strategic move to preserve cash or negotiate better terms with suppliers.
Overall, a decreasing payables turnover ratio for Altria Group Inc. indicates a longer payment cycle with suppliers, which could potentially impact cash flow management and relationships with vendors. Further analysis of the company's financial statements and industry trends would provide a more comprehensive understanding of the implications of this trend.
Peer comparison
Dec 31, 2023