Crocs Inc (CROX)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,127,210 | 2,948,180 | 2,723,820 | 1,647,390 | 1,187,610 |
| Payables | US$ in thousands | 264,901 | 260,978 | 230,821 | 162,145 | 112,778 |
| Payables turnover | 11.81 | 11.30 | 11.80 | 10.16 | 10.53 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,127,210K ÷ $264,901K
= 11.81
Based on the data provided, Crocs Inc's payables turnover has shown a consistent and positive trend over the years. The payables turnover ratio measures how efficiently a company manages its payables by comparing the amount owed to suppliers to the average accounts payable balance.
Crocs Inc's payables turnover ratio was 10.53 at the end of 2020 and improved to 10.16 by the end of 2021. This indicates that the company was able to pay off its suppliers approximately 10.53 and 10.16 times, respectively, during those years.
The trend continued to show improvement as the payables turnover ratio increased to 11.80 by the end of 2022 and maintained its strength at 11.30 by the end of 2023. This suggests that Crocs Inc was managing its payables more efficiently, possibly negotiating better terms with suppliers or improving its working capital management.
By the end of 2024, Crocs Inc achieved a payables turnover ratio of 11.81, reflecting a further improvement in managing its accounts payable. The increasing ratio indicates that the company is efficiently using its available cash flow to settle its payables, which could lead to better relationships with suppliers and potential cost savings.
Overall, the consistent increase in Crocs Inc's payables turnover ratio over the years highlights the company's ability to effectively manage its payables and suggests good financial health and efficient working capital management practices.
Peer comparison
Dec 31, 2024