Crocs Inc (CROX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,948,180 | 2,723,820 | 1,647,390 | 1,187,610 | 1,117,270 |
| Payables | US$ in thousands | 260,978 | 230,821 | 162,145 | 112,778 | 95,754 |
| Payables turnover | 11.30 | 11.80 | 10.16 | 10.53 | 11.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,948,180K ÷ $260,978K
= 11.30
Crocs Inc's payables turnover ratio measures the company's ability to efficiently manage its accounts payable by calculating how many times the company pays off its suppliers within a given period. The trend in Crocs Inc's payables turnover over the past five years shows fluctuations.
In 2023, the payables turnover ratio decreased to 6.71 from 7.34 in 2022, indicating a reduction in the rate at which Crocs Inc is paying off its suppliers. This may suggest that the company is taking longer to settle its payables compared to the previous year.
Comparing the current ratio to 2021 and 2020, Crocs Inc's payables turnover was 5.51 and 5.64, respectively, demonstrating an improvement in the efficiency of payables management in 2023.
Despite the variation in the payables turnover ratio in different years, it is essential to consider other factors such as industry norms, company policies, and economic conditions to gain a holistic understanding of Crocs Inc's payables management efficiency.
Peer comparison
Dec 31, 2023