BJs Restaurants Inc (BJRI)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	949,594	940,589	775,858	583,965	810,011
Payables	US$ in thousands	60,641	59,563	48,840	37,770	23,422
Payables turnover		15.66	15.79	15.89	15.46	34.58

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $949,594K ÷ $60,641K
= 15.66

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the company's purchases to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Based on the data provided for BJs Restaurants Inc, the payables turnover has been consistent over the past five years, ranging from 15.46 to 34.58. This stability suggests that BJs Restaurants Inc maintains a relatively efficient accounts payable management system. However, the significant decrease in payables turnover from 2019 to 2020 may indicate a change in the company's payment practices or supplier relationships during that period.

Overall, BJs Restaurants Inc's payables turnover indicates that the company is effectively managing its accounts payable and maintaining stable relationships with its suppliers. It is essential for investors and analysts to monitor this ratio over time to ensure that the company continues to effectively manage its payables and maintain positive relationships with its suppliers.