Fortune Brands Innovations Inc. (FBIN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,011,300 | 2,790,100 | 2,840,600 | 1,456,900 | 3,712,200 |
| Payables | US$ in thousands | 568,100 | 421,600 | 561,000 | 620,500 | 460,000 |
| Payables turnover | 7.06 | 6.62 | 5.06 | 2.35 | 8.07 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,011,300K ÷ $568,100K
= 7.06
Fortune Brands Innovations Inc.'s payables turnover has shown fluctuations over the past five years. The company's ability to manage its accounts payable improved significantly from 2020 to 2021, with a notable increase in the payables turnover ratio from 2.35 to 5.06. However, in 2022, the ratio slightly decreased to 6.62 before increasing again to 7.06 in 2023.
A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently or in a timely manner. In Fortune Brands Innovations Inc.'s case, the increasing trend in the ratio since 2020 suggests improvements in the company's efficiency in managing its accounts payable.
It is important to consider industry norms and compare the company's payables turnover ratio with its peers to gain a better understanding of its performance in managing supplier payments. Additionally, further analysis of the company's cash flow management and working capital practices would provide additional insights into its overall financial health.
Peer comparison
Dec 31, 2023