Columbia Sportswear Company (COLM)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	3,199,884	3,267,297	3,225,769	3,181,513	3,095,571	2,999,122	2,860,068	2,820,526	2,696,970	2,224,465	1,905,782	1,540,144	1,277,665	1,301,291	1,403,205	1,505,443	1,526,808	1,493,608	1,445,608	1,425,987
Payables	US$ in thousands	235,927	162,222	247,416	220,231	322,472	336,782	312,353	262,255	283,349	241,119	267,677	165,555	206,697	164,332	255,702	150,971	255,372	201,806	309,945	186,943
Payables turnover		13.56	20.14	13.04	14.45	9.60	8.91	9.16	10.75	9.52	9.23	7.12	9.30	6.18	7.92	5.49	9.97	5.98	7.40	4.66	7.63

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,199,884K ÷ $235,927K
= 13.56

The payables turnover ratio for Columbia Sportswear Co. has fluctuated over the past eight quarters, ranging from a low of 5.09 in Q3 2022 to a high of 11.18 in Q3 2023. This ratio measures how efficiently the company is managing its accounts payable by indicating how many times during a period the company pays off its suppliers. A higher ratio implies that the company is paying its suppliers more frequently, which could indicate strong liquidity and good relationships with suppliers.

The recent increase in payables turnover from Q3 2023 to Q4 2023 suggests that the company is now paying its suppliers at a faster rate. This could be due to various factors such as improved cash flow management, renegotiated payment terms with suppliers, or increased efficiency in the accounts payable process. Overall, a higher payables turnover ratio is generally seen as positive as it indicates effective management of vendor payments.