ConAgra Foods Inc (CAG)

Payables turnover

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cost of revenue	US$ in thousands	12,276,900	12,005,400	10,466,700	9,837,200	10,246,200
Payables	US$ in thousands	1,493,700	1,525,500	1,864,600	1,655,900	1,507,100
Payables turnover		8.22	7.87	5.61	5.94	6.80

May 26, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $12,276,900K ÷ $1,493,700K
= 8.22

The payables turnover ratio for ConAgra Foods Inc has exhibited a fluctuating trend over the past five years. In the most recent fiscal year ending on May 26, 2024, the company's payables turnover ratio was 8.22, indicating that ConAgra Foods Inc converted its accounts payable into purchases approximately 8.22 times during that year. This represents an improvement compared to the previous year, where the payables turnover ratio was 7.87.

The increasing trend in payables turnover over the past two years suggests that the company has been managing its trade payables more efficiently. A higher payables turnover ratio may indicate that the company is paying its suppliers more quickly, which could potentially improve supplier relationships and possibly lead to more favorable payment terms.

Overall, the upward trend in payables turnover reflects positively on ConAgra Foods Inc's ability to effectively manage its accounts payable and suggests that the company may be effectively utilizing its working capital to support its operations.