Westinghouse Air Brake Technologies Corp (WAB)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,800,000 | 8,452,000 | 7,330,000 | 6,974,000 | 6,840,400 |
| Payables | US$ in thousands | 1,300,000 | 1,250,000 | 1,301,000 | 1,012,000 | 909,000 |
| Payables turnover | 6.77 | 6.76 | 5.63 | 6.89 | 7.53 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,800,000K ÷ $1,300,000K
= 6.77
The payables turnover ratio for Westinghouse Air Brake Technologies Corp has exhibited some fluctuations over the past five years. In December 2020, the company's payables turnover stood at 7.53 times, indicating that it was paying off its accounts payable approximately 7.53 times during that period.
However, this ratio decreased to 6.89 in December 2021, signifying a decrease in the frequency of paying off accounts payable compared to the previous year. Subsequently, in December 2022, the payables turnover ratio fell further to 5.63, reflecting a more significant decline in the efficiency of paying off accounts payable.
In December 2023, there was a slight recovery as the payables turnover ratio improved to 6.76, suggesting a better performance in managing accounts payable during that year. This improvement was sustained in December 2024, with the ratio remaining relatively stable at 6.77.
Overall, the trend in Westinghouse Air Brake Technologies Corp's payables turnover shows some variability, with a general decrease from 2020 to 2022, followed by a moderate recovery in 2023 and 2024. Monitoring this ratio over time can provide insights into the company's liquidity management and relationships with suppliers.
Peer comparison
Dec 31, 2024