CAVA Group, Inc. (CAVA)

Number of days of payables

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Payables turnover		30.40	29.44	28.68	33.81	33.14	34.57	41.51	36.24	27.54	33.55	33.28
Number of days of payables	days	12.01	12.40	12.73	10.79	11.01	10.56	8.79	10.07	13.25	10.88	10.97

March 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 30.40
= 12.01

The analysis of CAVA Group, Inc.'s accounts payable days over the specified period reveals fluctuations in the company's payment delay to suppliers. At the end of September 2022, the company maintained an average of approximately 11 days of payables. This duration slightly decreased to around 10.9 days by the end of December 2022, indicating a marginally quicker settlement cycle.

In the subsequent quarters, there was a noticeable increase in the number of days payable, peaking at approximately 13.25 days as of March 31, 2023. This suggests a relatively extended period before the company settled its payables during that quarter. The subsequent quarters saw a decline to roughly 10 days by June 30, 2023, followed by a further decrease to approximately 8.8 days at September 30, 2023, indicating a trend towards faster payments or potentially improved liquidity management.

However, from the end of 2023 onward, the days payable began to increase again, with values reaching about 10.6 days by December 31, 2023, and approximately 11 days by March 31, 2024. The upward trend continued into 2024, with the number of days rising to close to 12.7 days by September 30, 2024. This longer duration suggests a possible shift towards more extended payment terms or changes in the company's vendor management strategies.

Overall, the period exhibits variability with no consistent trend, oscillating between shorter and longer payment periods. The fluctuations could be reflective of strategic adjustments in supplier negotiations, cash flow management practices, or market conditions impacting the company’s accounts payable behavior over time.