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', VLRS's payables turnover was 6.50, indicating how promptly the company pays its suppliers. Industry average for Air Freight/Delivery Services in '2021' stood at 6.80.
• In '2022', VLRS's payables turnover was 7.57, 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', VLRS's payables turnover was 5.78, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. 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', VLRS's payables turnover was 5.32, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Air Freight/Delivery Services in '2024' stood at 6.94. Industry average declined by 0.23 from previous year.
Overall, VLRS's payables turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable

Good Range: Ranges 5-15 depending on industry.