Fox Factory Holding Corp (FOXF)
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 | 1,266,884 | 1,294,537 | 1,343,540 | 1,332,813 | 1,313,285 | 1,263,611 | 1,213,628 | 1,155,837 | 1,068,575 | 994,474 | 921,239 | 812,521 | 750,064 | 684,571 | 645,519 | 644,900 | 612,041 | 587,109 | 557,109 | 528,713 |
| Payables | US$ in thousands | 104,150 | 88,476 | 99,296 | 135,331 | 131,160 | 131,659 | 161,614 | 157,015 | 99,984 | 156,504 | 154,089 | 121,722 | 92,403 | 101,439 | 64,939 | 88,613 | 55,144 | 64,853 | 70,602 | 75,593 |
| Payables turnover | 12.16 | 14.63 | 13.53 | 9.85 | 10.01 | 9.60 | 7.51 | 7.36 | 10.69 | 6.35 | 5.98 | 6.68 | 8.12 | 6.75 | 9.94 | 7.28 | 11.10 | 9.05 | 7.89 | 6.99 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,266,884K ÷ $104,150K
= 12.16
The payables turnover ratio for Fox Factory Holding Corp has exhibited fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance within a specific period.
From the data provided, we observe that the payables turnover ratio has shown an increasing trend from 6.99 in March 2019 to a peak of 14.63 in September 2023. This indicates that the company is managing its payables more efficiently over time.
A higher payables turnover ratio signifies that the company is paying its suppliers more quickly, which can be beneficial in terms of maintaining good relationships with suppliers and potentially taking advantage of early payment discounts.
It is important to note that a consistently low payables turnover ratio may suggest that the company is not effectively managing its payables or may be experiencing cash flow issues. Conversely, an extremely high ratio could indicate that the company is excessively pressuring its suppliers for extended credit terms, potentially straining supplier relationships.
Overall, the increasing trend in Fox Factory Holding Corp's payables turnover ratio indicates improving efficiency in managing its accounts payable, which can be a positive sign for the company's financial health and working capital management.
Peer comparison
Dec 31, 2023