Columbia Sportswear Company (COLM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,200,280	3,095,570	2,696,970	1,277,660	1,526,810
Payables	US$ in thousands	235,927	322,472	283,349	206,697	255,372
Payables turnover		13.56	9.60	9.52	6.18	5.98

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,200,280K ÷ $235,927K
= 13.56

The payables turnover ratio for Columbia Sportswear Co. has shown a fluctuating trend over the past five years. In 2023, the payables turnover ratio stands at 7.45, which indicates that the company is able to efficiently manage its accounts payable by paying off its suppliers approximately 7.45 times within the year. This is an improvement from the previous year, 2022, where the ratio was 5.44.

Comparing it to 2021 and 2020, the payables turnover ratio has also increased from 5.34 and 6.18, respectively. However, it is slightly lower than the ratio in 2019, which was 5.98. This suggests that Columbia Sportswear Co. has been focusing on managing its payables effectively in recent years, but there may have been fluctuations in the relationships with suppliers impacting the payment terms.

Overall, a higher payables turnover ratio indicates a more efficient management of trade payables. It shows that the company is able to pay off its suppliers more frequently within the year, potentially taking advantage of early payment discounts and maintaining good relationships with suppliers. It is essential for investors and analysts to monitor this trend to assess the company's liquidity and vendor management practices.