Sun Country Airlines Holdings Inc (SNCY)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021
Cost of revenue (ttm) US$ in thousands 693,260 682,045 678,970 670,250 663,480 658,500 647,398 649,289 624,370 578,361 534,690 468,271 409,853
Payables US$ in thousands 56,034 49,223 60,884 59,929 59,011 55,680 56,143 58,455 62,370 49,969 58,051 49,890 39,805
Payables turnover 12.37 13.86 11.15 11.18 11.24 11.83 11.53 11.11 10.01 11.57 9.21 9.39 10.30

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $693,260K ÷ $56,034K
= 12.37

The payables turnover ratio for Sun Country Airlines Holdings Inc has experienced fluctuations over the years, ranging from a low of 9.21 to a high of 13.86. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times it pays off its suppliers within a given period. A higher payables turnover ratio generally suggests that the company is paying its suppliers more frequently, which could indicate good liquidity or strong negotiating power with suppliers. Conversely, a lower ratio may signal inefficiencies in payables management or potential liquidity issues.

Analyzing the trend, we can see that the payables turnover ratio has generally trended upwards from 2022 to 2024. This improvement indicates that Sun Country Airlines Holdings Inc has been managing its accounts payable more efficiently over time. The ratio peaked in September 2024 at 13.86, indicating that the company was paying its suppliers at a faster rate compared to the earlier periods in the dataset. This upward trend suggests that the company may have improved its relationships with suppliers, negotiated better payment terms, or enhanced its overall liquidity position. However, it's essential to continue monitoring this ratio in future periods to ensure that the efficiency in managing payables is sustained.