Fortune Brands Innovations Inc. (FBIN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,871,100 | 4,011,300 | 2,790,100 | 2,840,600 | 1,456,900 |
| Payables | US$ in thousands | 513,900 | 568,100 | 421,600 | 561,000 | 620,500 |
| Payables turnover | 7.53 | 7.06 | 6.62 | 5.06 | 2.35 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,871,100K ÷ $513,900K
= 7.53
Fortune Brands Innovations Inc.'s payables turnover has shown a consistent upward trend over the years, increasing from 2.35 in December 31, 2020, to 7.53 in December 31, 2024. This indicates that the company is managing its accounts payable more efficiently, as it takes less time for the company to pay off its suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which can help improve relationships with suppliers and potentially negotiate better payment terms. Overall, the increasing trend in payables turnover reflects positively on Fortune Brands Innovations Inc.'s liquidity management and operational efficiency.
Peer comparison
Dec 31, 2024