Fortune Brands Innovations Inc. (FBIN)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,011,400 | 3,643,600 | 3,295,500 | 3,026,600 | 2,790,100 | 2,852,600 | 2,894,700 | 2,877,900 | 2,840,600 | 3,170,500 | 3,483,300 | 3,650,800 | 3,925,900 | 3,812,600 | 3,675,900 | 3,752,600 | 3,712,200 | 3,692,400 | 3,644,500 | 3,579,800 |
| Payables | US$ in thousands | 568,100 | 570,400 | 489,500 | 423,700 | 421,600 | 672,600 | 756,300 | 728,100 | 561,000 | 735,700 | 697,500 | 599,200 | 620,500 | 544,100 | 463,900 | 426,400 | 460,000 | 436,500 | 476,600 | 442,000 |
| Payables turnover | 7.06 | 6.39 | 6.73 | 7.14 | 6.62 | 4.24 | 3.83 | 3.95 | 5.06 | 4.31 | 4.99 | 6.09 | 6.33 | 7.01 | 7.92 | 8.80 | 8.07 | 8.46 | 7.65 | 8.10 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,011,400K ÷ $568,100K
= 7.06
The payables turnover ratio for Fortune Brands Innovations Inc. has shown fluctuations over the past five years. The ratio measures how efficiently the company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
From December 2019 to December 2022, the payables turnover ratio steadily increased from 8.10 to 6.62 before experiencing a substantial jump to 7.14 in March 2023. This sudden increase could suggest that the company started paying its suppliers at a faster rate. However, the ratio decreased slightly in June 2023 but remained above the levels seen in the previous years.
The payables turnover ratio reached its peak of 8.80 in March 2020, indicating that the company was efficiently managing its accounts payable. However, the ratio has been trending downwards since then, with some fluctuations, possibly indicating a change in the company's payment practices or supplier relationships.
Overall, it is important for investors and stakeholders to monitor Fortune Brands Innovations Inc.'s payables turnover ratio over time to assess the effectiveness of its accounts payable management and supplier payment policies.
Peer comparison
Dec 31, 2023