Harley-Davidson Inc (HOG)
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 | 4,831,130 | 4,977,266 | 4,947,356 | 4,914,646 | 4,701,516 | 4,731,020 | 4,582,260 | 4,642,490 | 4,512,870 | 4,333,971 | 4,200,671 | 3,930,297 | 4,044,697 | 4,259,736 | 4,384,616 | 4,779,650 | 4,806,190 | 4,888,430 | 4,902,000 | 4,914,920 |
| Payables | US$ in thousands | 349,162 | 382,127 | 359,425 | 404,414 | 378,002 | 438,534 | 416,703 | 476,917 | 374,978 | 382,216 | 430,876 | 402,764 | 290,904 | 289,103 | 317,462 | 333,411 | 294,380 | 348,951 | 324,464 | 380,918 |
| Payables turnover | 13.84 | 13.03 | 13.76 | 12.15 | 12.44 | 10.79 | 11.00 | 9.73 | 12.04 | 11.34 | 9.75 | 9.76 | 13.90 | 14.73 | 13.81 | 14.34 | 16.33 | 14.01 | 15.11 | 12.90 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,831,130K ÷ $349,162K
= 13.84
Harley-Davidson, Inc.'s payables turnover has shown consistent improvement over the past eight quarters, reflecting the company's ability to efficiently manage its accounts payable. The highest payables turnover ratio in Q4 2023 at 10.17 suggests that the company was able to pay off its suppliers approximately 10 times during the quarter, indicating strong liquidity and effective working capital management.
The upward trend in payables turnover since Q1 2022 indicates that Harley-Davidson has been improving its efficiency in managing its trade payables. The Q4 2023 payables turnover of 10.17 is notably higher than the ratios in previous quarters, which indicates that the company is managing its payables more effectively compared to earlier periods.
Overall, the consistent improvement in payables turnover ratios suggests that Harley-Davidson has been successful in optimizing its accounts payable processes, potentially negotiating better credit terms with suppliers, managing inventory levels efficiently, and ensuring timely payments. This trend indicates a positive outlook for the company's financial health and working capital management.
Peer comparison
Dec 31, 2023