The Chefs Warehouse Inc (CHEF)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,700,820 | 3,359,870 | 2,536,260 | 1,755,500 | 1,245,600 |
| Payables | US$ in thousands | 266,775 | 200,547 | 163,397 | 118,284 | 57,515 |
| Payables turnover | 13.87 | 16.75 | 15.52 | 14.84 | 21.66 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,700,820K ÷ $266,775K
= 13.87
The payables turnover ratio of The Chefs Warehouse Inc has shown some fluctuations over the years, reflecting its ability to efficiently manage its accounts payable.
In 2020, the payables turnover ratio was 21.66, indicating that the company was able to pay off its suppliers approximately 21.66 times during that period. This high turnover may suggest that the company was effectively managing its payables or negotiating favorable payment terms with its suppliers.
However, in 2021, the payables turnover ratio decreased to 14.84, which could indicate that the company took longer to pay off its suppliers compared to the previous year. The decrease in this ratio may raise some concerns about the efficiency of the company's payables management.
Subsequently, the payables turnover ratio increased slightly to 15.52 in 2022 and further to 16.75 in 2023, showing an improvement in the company's ability to manage its payables. This upward trend could suggest that The Chefs Warehouse Inc was becoming more efficient in paying off its suppliers.
Nevertheless, in 2024, the payables turnover ratio dropped to 13.87, indicating that the company may have taken longer to pay its suppliers during that period. This decline in the ratio could raise questions about the company's payment practices and its relationship with suppliers.
Overall, the fluctuation in The Chefs Warehouse Inc's payables turnover ratio over the years highlights the importance of efficiently managing accounts payable to maintain healthy supplier relationships and strengthen the company's financial position.
Peer comparison
Dec 31, 2024