ConAgra Foods Inc (CAG)

Payables turnover

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Cost of revenue	US$ in thousands	8,609,300	8,717,500	12,276,900	9,012,200	12,005,400
Payables	US$ in thousands	1,590,100	1,493,700	1,493,700	1,525,500	1,525,500
Payables turnover		5.41	5.84	8.22	5.91	7.87

May 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $8,609,300K ÷ $1,590,100K
= 5.41

The payables turnover ratio for ConAgra Foods Inc over the specified periods exhibits notable fluctuations that warrant detailed analysis.

In the period ending May 28, 2023, the ratio was 7.87, indicating that the company paid its suppliers approximately 7.87 times within that fiscal period. This suggests a relatively brisk payment cycle, reflecting efficient management of payables or favorable credit terms.

By the subsequent period ending May 31, 2023, the payables turnover decreased significantly to 5.91. This decline indicates a lengthening in the average time taken by the company to settle its payables, potentially signaling a strategic extension of payment terms or cash flow considerations impacting payable management.

Moving into the period ending May 26, 2024, the ratio increased to 8.22, surpassing the earlier high of 7.87. This rebound points toward a shortening of the payable cycle, possibly due to improved supplier negotiations or an intentional effort to pay suppliers more promptly, reinforcing a more active management of short-term liabilities.

However, by the next reported period ending May 31, 2024, the ratio declined again markedly to 5.84. This suggests a renewed extension in payment practices, which could be motivated by liquidity management tactics or external factors affecting cash disbursements.

Finally, for the period ending May 31, 2025, the payables turnover further decreased to 5.41, representing the lowest ratio in the series. This continued downward trend indicates an elongated payables cycle, which might signify a deliberate strategy to conserve cash or negotiate extended credit terms with suppliers for operational flexibility.

In summation, the payables turnover for ConAgra Foods Inc demonstrates variability across the observed periods, with a recent tendency toward longer payable cycles. These fluctuations could reflect strategic decision-making concerning cash management, supplier relations, or responses to broader market conditions. The overall trend suggests a cautious approach to payables, favoring extended payment periods, which, while positively impacting short-term liquidity, should be balanced against supplier relationships and creditworthiness considerations.