National Vision Holdings Inc (EYE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,173,460 | 1,946,680 | 1,907,070 | 1,625,200 | 1,647,140 |
| Payables | US$ in thousands | 67,556 | 65,276 | 64,331 | 64,861 | 40,782 |
| Payables turnover | 32.17 | 29.82 | 29.64 | 25.06 | 40.39 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,173,460K ÷ $67,556K
= 32.17
The payables turnover ratio for National Vision Holdings Inc has shown a fluctuating trend over the past five years. The ratio increased from 25.06 in 2020 to 32.17 in 2023, indicating that the company is taking longer to pay its suppliers. This could suggest either a strained cash position or a deliberate strategy to delay payments.
The peak in 2019 with a ratio of 40.39 suggests that the company was paying its suppliers more frequently. The decreasing trend from 2019 to 2020 followed by an increasing trend from 2020 to 2023 could indicate changes in the company's payment policies or supplier relationships.
Overall, a high payables turnover ratio may signal good liquidity, but it could also indicate potential issues with supplier relationships or cash flow management. It is important for National Vision Holdings Inc to carefully monitor its payables turnover ratio and ensure it aligns with the company's financial objectives and industry standards.
Peer comparison
Dec 31, 2023