EchoStar Corporation (SATS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,002,300 | 914,002 | 953,467 | 1,031,810 | 1,036,610 |
| Payables | US$ in thousands | 774,011 | 1,023,540 | 109,338 | 122,366 | 124,080 |
| Payables turnover | 20.67 | 0.89 | 8.72 | 8.43 | 8.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $16,002,300K ÷ $774,011K
= 20.67
The payables turnover ratio for EchoStar Corporation has experienced significant fluctuations over the past five years. In 2023, the company achieved a notably high payables turnover of 20.67, indicating that it paid off its accounts payable obligations approximately 20.67 times during the year. This increase from the prior year's ratio of 0.89 suggests a substantial improvement in the efficiency of managing its accounts payable.
The significant increase in payables turnover could imply that EchoStar has become more adept at managing its trade payables, possibly negotiating improved payment terms with suppliers or streamlining its payment processes. This trend may reflect positively on the company's liquidity and working capital management.
It is important to note that the low payables turnover ratio of 0.89 in 2022 may have been an anomaly or could indicate inefficiencies in managing accounts payable during that period. The subsequent improvement in 2023 demonstrates a positive trend in the company's ability to handle its payables effectively.
Overall, the upward trend in payables turnover suggests that EchoStar Corporation has been proactive in optimizing its accounts payable management, which could potentially result in improved cash flow, working capital efficiency, and relationships with suppliers.
Peer comparison
Dec 31, 2023