The Chefs Warehouse Inc (CHEF)
Payables turnover
| 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 23, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,700,823 | 3,615,842 | 3,571,289 | 3,504,144 | 3,355,581 | 3,200,476 | 2,978,078 | 2,738,566 | 2,534,815 | 2,318,354 | 2,156,745 | 1,957,848 | 1,754,536 | 1,228,183 | 1,024,763 | 760,089 | 742,761 | 1,041,262 | 1,066,043 | 1,217,886 |
| Payables | US$ in thousands | 266,775 | 232,153 | 220,391 | 183,003 | 200,547 | 209,299 | 198,087 | 169,912 | 163,397 | 142,963 | 144,547 | 121,444 | 118,284 | 108,972 | 107,918 | 69,461 | 57,515 | 73,969 | 60,878 | 92,621 |
| Payables turnover | 13.87 | 15.58 | 16.20 | 19.15 | 16.73 | 15.29 | 15.03 | 16.12 | 15.51 | 16.22 | 14.92 | 16.12 | 14.83 | 11.27 | 9.50 | 10.94 | 12.91 | 14.08 | 17.51 | 13.15 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,700,823K ÷ $266,775K
= 13.87
The payables turnover ratio for The Chefs Warehouse Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its suppliers during a specific period.
Initially starting at 13.15 on March 31, 2020, the payables turnover ratio increased significantly to 17.51 on June 30, 2020, implying a faster rate of paying off suppliers. However, the ratio decreased to 9.50 by June 30, 2021, which indicates a slowdown in the rate of paying off payables.
Subsequently, the ratio fluctuated within a range between 9.50 and 19.15 before stabilizing around 15-16 range from March 31, 2024, onwards. This stability in the payables turnover ratio suggests that the company has been maintaining a consistent pace in paying off its suppliers.
Overall, a payables turnover ratio in the range of 15-16, as seen towards the end of the period, indicates that The Chefs Warehouse Inc is efficiently managing its accounts payable by striking a balance between timely payments and maintaining positive relationships with suppliers.
Peer comparison
Dec 31, 2024