Alaska Air(Alk) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for ALK compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2021', ALK's payables turnover was 24.11, indicating how promptly the company pays its suppliers. Industry average for Air Freight/Delivery Services in '2021' stood at 6.80.
• In '2022', ALK's payables turnover was 37.93, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Air Freight/Delivery Services in '2022' stood at 5.95. Industry average declined by 0.85 from previous year.
• In '2023', ALK's payables turnover was 39.99, indicating how promptly the company pays its suppliers. The increase since '2022' reflects strengthening financial performance. Industry average for Air Freight/Delivery Services in '2023' stood at 7.17. Industry average increased by 1.22 compared to previous year.
• In '2024', ALK's payables turnover was 48.94, indicating how promptly the company pays its suppliers. The increase since '2023' reflects strengthening financial performance. Industry average for Air Freight/Delivery Services in '2024' stood at 6.94. Industry average declined by 0.23 from previous year.
Overall, ALK's payables turnover has been volatile but showed an upward trend over the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.