Westinghouse Air Brake Technologies Corp (WAB)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,698,000 | 8,682,000 | 8,632,000 | 8,521,000 | 8,342,000 | 8,151,000 | 7,777,000 | 7,461,000 | 7,238,000 | 6,998,100 | 6,878,400 | 6,911,600 | 6,871,000 | 6,938,300 | 6,914,200 | 6,687,100 | 6,746,100 | 7,002,000 | 7,154,100 | 7,592,800 |
| Payables | US$ in thousands | 1,300,000 | 1,338,000 | 1,331,000 | 1,288,000 | 1,250,000 | 1,243,000 | 1,307,000 | 1,353,000 | 1,301,000 | 1,206,000 | 1,178,000 | 1,058,000 | 1,012,000 | 947,300 | 994,700 | 955,000 | 909,000 | 962,000 | 1,006,000 | 1,087,200 |
| Payables turnover | 6.69 | 6.49 | 6.49 | 6.62 | 6.67 | 6.56 | 5.95 | 5.51 | 5.56 | 5.80 | 5.84 | 6.53 | 6.79 | 7.32 | 6.95 | 7.00 | 7.42 | 7.28 | 7.11 | 6.98 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,698,000K ÷ $1,300,000K
= 6.69
Westinghouse Air Brake Technologies Corp's payables turnover ratio has displayed fluctuations over the reported periods. The payables turnover ratio indicates how efficiently the company is managing its trade credit from suppliers.
From March 31, 2020, to June 30, 2021, the payables turnover ratio showed a generally increasing trend, reaching a peak of 7.42 on December 31, 2020. This uptrend suggests that the company was managing its accounts payable effectively during this period.
However, from March 31, 2021, onwards, the payables turnover ratio started declining, indicating that the company took longer to pay off its suppliers compared to the previous periods. By December 31, 2024, the payables turnover ratio had dropped to 6.69 from its peak in 2020.
The decreasing trend in the payables turnover ratio from 2021 to 2024 may suggest that Westinghouse Air Brake Technologies Corp may be facing challenges in managing its payables efficiently. This could impact relationships with suppliers and indicate potential liquidity concerns if not managed effectively. Further analysis of the company's supplier relationships and cash flow management practices may be warranted to address these trends.
Peer comparison
Dec 31, 2024