The Chefs Warehouse Inc (CHEF)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,359,870 | 2,536,260 | 1,755,500 | 1,245,600 | 1,200,620 |
| Payables | US$ in thousands | 200,547 | 163,397 | 118,284 | 57,515 | 94,097 |
| Payables turnover | 16.75 | 15.52 | 14.84 | 21.66 | 12.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,359,870K ÷ $200,547K
= 16.75
The payables turnover ratio for The Chefs Warehouse Inc has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is managing its accounts payables by measuring the number of times the company pays off its suppliers during a specific period.
The trend shows an increasing pattern from 2019 to 2020, indicating that the company was taking longer to pay its suppliers during that period. However, in 2021, there was a slight decrease in the ratio, reflecting an improvement in paying off suppliers more frequently.
In 2022, the ratio increased again, suggesting a slowdown in supplier payments compared to the previous year. The most recent data for 2023 demonstrates a further increase in payables turnover, indicating that the company has accelerated its payments to suppliers, potentially improving its vendor relations and cash flow management.
Overall, the company's payables turnover has shown variability in recent years, with a general improvement in 2023 compared to 2022. It is essential for The Chefs Warehouse Inc to carefully manage its payables turnover ratio to maintain healthy relationships with suppliers while effectively managing cash flow.
Peer comparison
Dec 31, 2023