CAVA Group, Inc. (CAVA)

Receivables 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
Revenue (ttm)	US$ in thousands	1,036,533	963,713	913,488	845,224	784,623	728,700	681,465	645,170	608,191	564,119	551,350
Receivables	US$ in thousands	15,917	12,996	13,200	13,889	11,732	11,885	12,692	11,878	11,516	7,735	7,735
Receivables turnover		65.12	74.15	69.20	60.86	66.88	61.31	53.69	54.32	52.81	72.93	71.28

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,036,533K ÷ $15,917K
= 65.12

The receivables turnover ratio for CAVA Group, Inc. exhibits notable fluctuations over the analyzed period, reflecting changes in the company's efficiency in collecting its accounts receivable. As of September 30, 2022, the ratio stood at 71.28, indicating a high frequency of receivables collection within a year. This figure demonstrates effective receivables management at the outset of the period under review.

By December 31, 2022, the ratio slightly increased to 72.93, underscoring continued efficiency in collection processes. However, a decline becomes evident by March 31, 2023, when the ratio decreased significantly to 52.81. This dip could suggest a temporary slowdown in receivables collections or changes in credit policies, customer payment behaviors, or sales mix during this period. The ratio marginally improved to 54.32 at June 30, 2023, indicating a partial recovery, but remained below the levels observed at the end of 2022.

In the subsequent quarter, September 30, 2023, the ratio decreased again to 53.69, maintaining a similar level and reflecting ongoing challenges in collection efficiency. The ratio then increased to 61.31 as of December 31, 2023, signaling an improvement in receivables management or collection efforts. This upward trend continues into March 31, 2024, with the ratio rising further to 66.88, approaching pre-2023 levels.

By June 30, 2024, the ratio slightly declined to 60.86 but still remained relatively strong. As of September 30, 2024, the receivables turnover increased again to 69.20, suggesting a further stabilization or improvement in collection efficiency. The ratio continued its upward trajectory, reaching 74.15 at December 31, 2024, which indicates an accelerated receivables turnover rate, potentially reflecting improved credit controls or faster collections.

Finally, as of March 31, 2025, the ratio settled at 65.12. While slightly lower than the year-end 2024 peak, this figure remains well above the lows observed earlier in 2023, pointing to an overall improvement in the company's receivables management over the period analyzed.

In summary, the receivables turnover ratio for CAVA Group, Inc. has experienced periods of decline and recovery, with recent data indicating a trend toward improved collection efficiency, closing the cycle with a comparatively strong ratio relative to previous lows. These fluctuations may be influenced by internal policies, customer payment behaviors, or broader economic conditions affecting receivables management.