Haverty Furniture Companies Inc (HVT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 794,853 | 929,288 | 894,441 | 706,546 | 777,674 |
| Payables | US$ in thousands | 18,781 | 23,345 | 31,235 | 31,429 | 27,830 |
| Payables turnover | 42.32 | 39.81 | 28.64 | 22.48 | 27.94 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $794,853K ÷ $18,781K
= 42.32
Haverty Furniture Companies Inc's payables turnover has shown a general increasing trend over the past five years, indicating more frequent turnover of its accounts payables. The ratio has improved from 27.94 in 2019 to 42.32 in 2023. This indicates that the company is taking less time to pay its suppliers and is managing its accounts payables more efficiently. A higher payables turnover ratio can suggest strong vendor relations, good working capital management, and potentially favorable credit terms. However, a very high ratio may also indicate aggressive bargaining with suppliers or potential liquidity issues. Overall, the increasing trend in Haverty Furniture Companies Inc's payables turnover ratio signals improved efficiency in managing its payables over the years.
Peer comparison
Dec 31, 2023