CAVA Group, Inc. (CAVA)

Number of days of payables

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Payables turnover 28.23 31.82 35.56 33.09 27.87
Number of days of payables days 12.93 11.47 10.27 11.03 13.10

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 28.23
= 12.93

The number of days of payables for CAVA Group, Inc. demonstrates a trend of gradual fluctuation over the analyzed period from December 31, 2020, to December 31, 2024. Specifically, the data indicates a decrease from 13.10 days in 2020 to a low of 10.27 days in 2022, suggesting an improvement in the company’s ability to settle its payables more quickly during this interval.

However, in 2023, the days of payables increased modestly to 11.47 days, indicating a slight extension in the payment period. This upward movement continued into 2024, reaching 12.93 days, thereby returning closer to, but still below, the initial level observed in 2020.

Overall, the trend suggests a pattern of decreasing payables duration through 2022, potentially reflecting more efficient cash management or improved working capital practices during that period. The subsequent increase post-2022 may indicate a strategic shift to extend payment terms, possibly to conserve cash or align with supplier terms. The fluctuations highlight the company’s evolving approach to its trade payables management over the analyzed timeframe.