SkyWest Inc (SKYW)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,324,750	1,333,740	1,045,820	2,926,800	3,536,810
Payables	US$ in thousands	470,251	422,001	496,333	278,677	284,473
Payables turnover		2.82	3.16	2.11	10.50	12.43

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,324,750K ÷ $470,251K
= 2.82

Based on the data provided for Skywest Inc.'s payables turnover ratio from 2019 to 2023, the ratios reported are consistently at 0.00. A payables turnover ratio of 0.00 indicates that the company is not effectively managing its accounts payable or is not utilizing its trade credit efficiently to support operations. This could suggest potential issues such as extended payment terms with suppliers, inefficiencies in the supply chain, or an inability to negotiate favorable payment terms. As a result, the company may be missing out on opportunities to optimize its working capital and improve overall cash flow management. It would be advisable for Skywest Inc. to conduct a thorough review of its accounts payable processes and supplier relationships to address these concerns and enhance its financial performance.