Fox Factory Holding Corp (FOXF)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,283,000 | 1,327,290 | 1,080,010 | 758,457 | 617,643 |
| Payables | US$ in thousands | 104,150 | 131,160 | 99,984 | 92,403 | 55,144 |
| Payables turnover | 12.32 | 10.12 | 10.80 | 8.21 | 11.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,283,000K ÷ $104,150K
= 12.32
The payables turnover ratio of Fox Factory Holding Corp has shown fluctuating trends over the past five years. In 2023, the payables turnover ratio improved to 12.32, indicating that the company's ability to efficiently manage its accounts payable has strengthened significantly compared to the prior year. This suggests that Fox Factory Holding Corp is taking longer to pay off its suppliers, which could potentially indicate improved cash flow management or negotiation power with suppliers.
It is worth noting that in 2020, the payables turnover ratio was at a lower level of 8.21, suggesting that the company took longer to pay off its accounts payable during that period, possibly due to strategic reasons or external factors impacting the business. However, the ratio rebounded in the following years, reaching 10.80 in 2021 and 10.12 in 2022.
Overall, the increasing trend in the payables turnover ratio indicates that Fox Factory Holding Corp has been managing its payables more efficiently over the years, which can have positive implications for its working capital management and cash flow position.
Peer comparison
Dec 31, 2023