CAVA Group, Inc. (CAVA)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	789,764	752,963	726,643	688,067	641,371	595,787	563,193	514,711	495,795	480,103	476,279
Payables	US$ in thousands	25,980	25,573	25,336	20,348	19,353	17,234	13,568	14,204	18,004	14,311	14,311
Payables turnover		30.40	29.44	28.68	33.81	33.14	34.57	41.51	36.24	27.54	33.55	33.28

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $789,764K ÷ $25,980K
= 30.40

The payables turnover ratio for CAVA Group, Inc. demonstrates notable fluctuations over the analyzed period. Starting at 33.28 times as of September 30, 2022, the ratio experienced a slight increase by the end of the year to 33.55, indicating a relatively stable pace of paying off accounts payable in this period. However, in the first quarter of 2023, a decline to 27.54 suggests the company took longer to settle its payables, potentially reflecting strategic payment timing or cash flow considerations.

In the subsequent quarter, the ratio recovered significantly to 36.24, signaling an acceleration in payment activity. This upward trend continued through September 30, 2023, when the ratio reached its peak at 41.51, possibly indicative of tighter supplier negotiations, improved liquidity, or a shift in payment policies favoring quicker settlement of payables.

Following this peak, a decline to 34.57 by the end of 2023 occurred, accompanied by a stabilization phase through March and June 2024 at ratios of 33.14 and 33.81, respectively. These figures suggest a period of relative consistency in payment practices. By September 30, 2024, the ratio decreased further to 28.68 before slightly rising again to 29.44 at year-end, and maintaining a moderate level at 30.40 in the first quarter of 2025.

Overall, the ratio indicates variability in CAVA Group, Inc.'s payable management, with periods of both accelerated and delayed payments. The recent trend appears to be toward a more moderate and stable payables turnover, reflecting possibly a balanced approach to managing supplier relationships and liquidity.