Westinghouse Air Brake Technologies Corp (WAB)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,452,000 | 7,330,000 | 6,974,000 | 6,840,400 | 7,490,000 |
| Payables | US$ in thousands | 1,250,000 | 1,301,000 | 1,012,000 | 909,000 | 1,157,500 |
| Payables turnover | 6.76 | 5.63 | 6.89 | 7.53 | 6.47 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,452,000K ÷ $1,250,000K
= 6.76
The payables turnover ratio for Westinghouse Air Brake Technologies Corp has shown a fluctuating trend over the past five years. In 2023, the company's payables turnover ratio improved significantly to 5.39 compared to 4.48 in 2022. This implies that the company is paying off its suppliers more frequently in 2023.
However, when comparing the latest ratio to previous years, we see that the payables turnover ratio was higher in 2020 (5.96) and 2019 (5.12) than in 2023. This suggests that the company was more efficient in managing its payables in those years.
Overall, a higher payables turnover ratio indicates that the company is taking less time to pay off its suppliers, which can be a positive sign of strong liquidity management. The fluctuation in the payables turnover ratio over the years may indicate changes in the company's payment practices and relationships with suppliers.
Peer comparison
Dec 31, 2023