PACCAR Inc (PCAR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 980,000 | 838,000 | 946,500 | 1,110,400 | 1,114,900 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $980,000K ÷ $—K
= —
Paccar Inc.'s payables turnover ratio has shown a fluctuating trend over the past five years. The ratio increased from 12.84 in 2020 to 13.71 in 2021 before further rising to 13.99 in 2022. However, there was a notable jump in 2019, with a payables turnover of 18.44.
The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio typically indicates that the company is paying its suppliers more quickly, potentially reflecting strong liquidity or favorable payment terms. Conversely, a lower ratio may suggest either extended payment terms with suppliers or inefficiencies in managing payables.
Paccar Inc.'s payables turnover ratio of 16.15 in 2023 indicates that the company is, on average, paying its suppliers approximately 16.15 times during the year. This may suggest effective management of payables and good relationships with suppliers. However, it is essential to consider industry norms and specific company circumstances when interpreting this ratio in isolation.
Peer comparison
Dec 31, 2023