BJs Restaurants Inc (BJRI)

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	1,008,190	1,028,925	1,029,076	1,022,357	940,589	896,175	873,660	839,228	775,858	705,264	644,818	545,397	571,965	637,519	690,081	793,906	810,011	799,696	790,967	779,704
Payables	US$ in thousands	60,641	49,357	53,816	51,511	59,563	51,088	47,874	49,076	48,840	40,950	43,174	41,503	37,770	38,384	43,016	28,547	23,422	29,167	33,114	32,942
Payables turnover		16.63	20.85	19.12	19.85	15.79	17.54	18.25	17.10	15.89	17.22	14.94	13.14	15.14	16.61	16.04	27.81	34.58	27.42	23.89	23.67

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,008,190K ÷ $60,641K
= 16.63

The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could imply efficient management of working capital.

Analyzing the payables turnover data of BJs Restaurants Inc from December 2019 to December 2023, we observe fluctuations in the ratio over time. The ratio ranged from a low of 13.14 times in March 2021 to a high of 34.58 times in March 2020.

The trend indicates that BJs Restaurants Inc has generally maintained a moderate to high payables turnover ratio, showcasing a relatively efficient management of its accounts payable. However, it is important to note the significant increase in the ratio from March 2020 to December 2020, which could signify a change in payment practices during that period.

Overall, the payables turnover ratio for BJs Restaurants Inc demonstrates a consistent effort to effectively manage its accounts payable by paying off suppliers in a timely manner. This indicates a sound financial management strategy in terms of working capital utilization.