Ryder System Inc (R)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,507,000 | 1,485,000 | 1,084,620 | 942,868 | 928,087 |
| Payables | US$ in thousands | 833,000 | 767,000 | 748,000 | 547,389 | 594,712 |
| Payables turnover | 1.81 | 1.94 | 1.45 | 1.72 | 1.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,507,000K ÷ $833,000K
= 1.81
Ryder System, Inc.'s payables turnover has displayed fluctuations over the past five years. The payables turnover ratio reflects the company's efficiency in managing its accounts payable. A higher turnover ratio is generally favorable, indicating that the company is paying its suppliers more frequently within a given period.
In 2023, the payables turnover ratio decreased to 11.39 from 12.54 in 2022, suggesting a slight decrease in the efficiency of Ryder System, Inc. in paying its suppliers compared to the previous year. However, the ratio remains relatively high, indicating that the company continues to effectively manage its accounts payable.
Comparing the current ratio to historical data, it is evident that Ryder System, Inc. experienced fluctuations in payables turnover in recent years. Despite the slight decrease in 2023, the company has maintained a consistently strong performance in managing its payables turnover, which may signify effective supplier relationships and cash flow management strategies. Further analysis and consideration of industry benchmarks would provide more insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2023