Floor & Decor Holdings Inc (FND)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,400,360 | 4,121,610 | 3,298,340 | 2,367,910 | 2,025,920 |
| Payables | US$ in thousands | 679,265 | 590,883 | 661,883 | 417,898 | 368,459 |
| Payables turnover | 6.48 | 6.98 | 4.98 | 5.67 | 5.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,400,360K ÷ $679,265K
= 6.48
Floor & Decor Holdings Inc's payables turnover ratio has shown variability over the past five years. In 2023, the company's payables turnover ratio was 6.48, a decrease from the previous year's ratio of 6.98. This indicates that the company took longer to pay its suppliers in 2023 compared to 2022. However, it is important to note that a higher payables turnover ratio may suggest more efficient management of payables.
Comparing 2023 to 2021, there was an improvement in the payables turnover ratio from 4.98 to 6.48, indicating that the company was able to manage its payables more effectively in 2023. Similarly, the payables turnover ratio in 2023 was higher than that of 2020 and 2019, indicating a positive trend in managing payables over the years.
Overall, Floor & Decor Holdings Inc's payables turnover ratio has shown some fluctuations, but the general trend suggests that the company has been improving its efficiency in managing payables over the years. Further analysis and comparison with industry peers may provide additional insights into the effectiveness of the company's payables management strategy.
Peer comparison
Dec 31, 2023