FTI Consulting Inc (FCN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,354,220 | 2,065,980 | 1,915,510 | 1,672,710 | 1,534,900 |
| Payables | US$ in thousands | 21,719 | 20,265 | 16,187 | 13,124 | 18,346 |
| Payables turnover | 108.39 | 101.95 | 118.34 | 127.45 | 83.66 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,354,220K ÷ $21,719K
= 108.39
FTI Consulting Inc.'s payables turnover ratio has been fluctuating over the past five years. The ratio, calculated as cost of goods sold divided by average accounts payable, indicates how efficiently the company is managing its payables.
In 2023, the payables turnover ratio increased to 108.39 from 101.95 in 2022, showing that FTI Consulting Inc. took approximately 108 days to pay its suppliers during the year. This suggests a slight improvement in the company's ability to settle its payables efficiently.
Compared to 2021 and 2020, where the ratios were higher at 118.34 and 127.45 respectively, the 2023 ratio indicates a decrease in the speed at which FTI Consulting Inc. is paying its suppliers. This might imply a potential extension of payment terms or a slowdown in the company's payables management.
Furthermore, when comparing the 2023 ratio to 2019, where it stood at 83.66, there has been a significant improvement over the years, indicating that the company has become more efficient in managing its payables.
Overall, FTI Consulting Inc.'s payables turnover ratio in 2023 reflects a moderate level of efficiency in its payables management, although there may be room for further improvement.
Peer comparison
Dec 31, 2023