Cracker Barrel Old Country Store (CBRL)

Payables turnover

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Cost of revenue	US$ in thousands	2,694,660	2,611,870	2,446,240	2,079,840	1,954,220
Payables	US$ in thousands	162,288	165,484	169,871	135,176	103,504
Payables turnover		16.60	15.78	14.40	15.39	18.88

August 2, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,694,660K ÷ $162,288K
= 16.60

Cracker Barrel Old Country Store's payables turnover has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance.

In this case, the payables turnover ratio has shown an increasing trend from 2018 to 2020, peaking at 18.88 times in July 2020. However, there was a slight decline in the ratio in the following years, reaching a low of 14.40 times in July 2022. This may indicate a slower rate of paying off suppliers or a longer time taken to settle payables during that period.

Overall, the payables turnover ratios for Cracker Barrel Old Country Store have generally been at healthy levels, indicating effective management of accounts payable and efficient handling of supplier relationships. The company's ability to effectively manage its accounts payable can contribute to maintaining good relationships with suppliers and optimizing cash flow. An in-depth analysis of the trend in payables turnover could provide further insights into the company's operational efficiency and financial performance.