Westinghouse Air Brake Technologies Corp (WAB)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 7,402,680 | 6,288,600 | 5,446,803 | 4,436,772 |
| Payables | US$ in thousands | 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 | 1,157,500 | 1,146,200 | 1,232,600 | 1,187,260 |
| Payables turnover | 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 | 6.40 | 5.49 | 4.42 | 3.74 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,342,000K ÷ $1,250,000K
= 6.67
The payables turnover ratio measures how efficiently a company manages its suppliers by calculating how quickly it pays its bills. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a year.
Analyzing Westinghouse Air Brake Technologies Corp's payables turnover ratio shows some fluctuations over the past eight quarters. In Q4 2023, the company's payables turnover ratio was 5.39, which increased from the previous quarter and reached one of the highest levels in the provided data. This suggests that the company is managing its payables effectively by paying its suppliers more frequently compared to the previous quarter.
Looking further back, Q2 2023 and Q1 2023 had lower payables turnover ratios of 4.82 and 4.45, respectively, indicating that the company took longer to pay its bills during those periods. However, the ratios remained above the 4.0 benchmark, suggesting that the company has been relatively efficient in managing its payable obligations.
Comparing the most recent data with the same quarter in the previous year, the Q4 2023 payables turnover ratio of 5.39 is higher than the ratio of 4.48 in Q4 2022. This improvement indicates that Westinghouse Air Brake Technologies Corp has been able to enhance its payment efficiency to suppliers over the year.
Overall, Westinghouse Air Brake Technologies Corp's payables turnover ratios over the past eight quarters have shown variations, but the company generally appears to be effectively managing its payables by consistently paying its suppliers within a reasonable timeframe. Further monitoring of this ratio will provide insights into the company's financial health and operational efficiency in managing its working capital.
Peer comparison
Dec 31, 2023