CAVA Group, Inc. (CAVA)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	721,908	548,354	508,859	462,457	813,700
Payables	US$ in thousands	25,573	17,234	14,311	13,975	29,200
Payables turnover		28.23	31.82	35.56	33.09	27.87

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $721,908K ÷ $25,573K
= 28.23

The payables turnover ratio for CAVA Group, Inc. demonstrates fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. Specifically, the ratio was 27.87 in 2020, indicating the number of times the company settled its trade payables during that year. This ratio increased to 33.09 in 2021, reflecting a higher frequency of payments to suppliers. The upward trend continued into 2022, reaching 35.56, which suggests an even more rapid turnover of payables, potentially indicating improved liquidity management or faster payment cycles.

However, subsequent years show a decline, with the ratio decreasing to 31.82 in 2023 and further down to 28.23 in 2024. This downward trend suggests that the company was settling its payables less frequently in these later years, which could indicate extended payment periods to suppliers, possibly as a strategic decision to optimize working capital or due to changes in payment terms.

Overall, the pattern reflects an initial phase of increasing efficiency in paying suppliers, followed by a moderation in the frequency of payments. The variations in the payables turnover ratio may be influenced by evolving credit terms, supply chain management strategies, or changes in the company's liquidity position over the analyzed period.