SkyWest Inc (SKYW)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,456,150	1,324,750	1,333,740	1,045,820	2,926,800
Payables	US$ in thousands	—	470,251	422,001	496,333	278,677
Payables turnover		—	2.82	3.16	2.11	10.50

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,456,150K ÷ $—K
= —

Based on the data provided for SkyWest Inc's payables turnover, the trend shows fluctuations over the years. The payables turnover ratio was at its highest in December 31, 2020, at 10.50, indicating the company was able to effectively manage its accounts payable by paying its suppliers more frequently during that period.

However, there was a significant decrease in the payables turnover ratio by December 31, 2021, dropping to 2.11. This sharp decline suggests that SkyWest Inc took longer to pay its suppliers compared to the previous year, which could have various implications such as strained supplier relationships or cash flow management issues.

Over the subsequent years, the payables turnover ratio improved slightly but remained below the initial level in 2020. By December 31, 2024, the data is unavailable (indicated as "—"), making it difficult to assess the trend for that year.

In conclusion, SkyWest Inc should closely monitor its payables turnover ratio to ensure efficient management of accounts payable and maintain healthy relationships with suppliers. Periodic analysis of this ratio can help the company identify any deviations from its typical payment patterns and take necessary actions to optimize its working capital management.