Grocery Outlet Holding Corp (GO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,855,190 | 3,450,560 | 2,972,870 | 2,989,180 | 2,460,340 |
| Payables | US$ in thousands | 209,354 | 137,631 | 122,110 | 114,278 | 119,217 |
| Payables turnover | 18.41 | 25.07 | 24.35 | 26.16 | 20.64 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,855,190K ÷ $209,354K
= 18.41
The payables turnover ratio for Grocery Outlet Holding Corp has shown a declining trend over the past five years. This ratio indicates the company's ability to efficiently manage its accounts payable by measuring how many times a company pays off its average accounts payable balance during a specific period.
In 2023, the payables turnover ratio decreased to 18.41 times, down from 25.07 times in 2022. This suggests that Grocery Outlet Holding Corp took longer to pay off its accounts payable in 2023 compared to the previous year. The decline in the ratio could be attributed to a variety of factors, such as changes in payment terms with suppliers, delays in processing payments, or an increase in accounts payable balances.
Although the payables turnover ratio fluctuated over the years, it remained relatively high, indicating that Grocery Outlet Holding Corp has historically been efficient in managing its accounts payable. However, the declining trend in recent years may warrant further analysis to understand the underlying reasons and assess the impact on the company's overall financial health and supplier relationships. It may be beneficial for the company to investigate the reasons behind the decreasing trend and implement strategies to improve its accounts payable management in the future.
Peer comparison
Dec 31, 2023