Jack In The Box Inc (JACK)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	873,010	727,375	379,230	346,726	333,555
Payables	US$ in thousands	84,960	66,271	29,119	31,105	37,066
Payables turnover		10.28	10.98	13.02	11.15	9.00

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $873,010K ÷ $84,960K
= 10.28

Based on the data provided, Jack In The Box Inc's payables turnover has shown fluctuations over the past five years. The payables turnover ratio indicates how efficiently a company is managing its payments to suppliers.

In 2023, the payables turnover ratio was 10.28, which suggests that the company paid off its accounts payable approximately 10.28 times during the year. This represents a slight decrease from the previous year's ratio of 10.98.

Compared to 2021 when the payables turnover ratio was 13.02, the company took longer to pay off its suppliers in 2023. However, the payables turnover ratio in 2023 was still higher than in 2020 and 2019, indicating an improvement in managing supplier payments during those years.

Overall, the payables turnover ratio for Jack In The Box Inc has shown variability but generally reflects a relatively efficient management of accounts payable over the past five years. This ratio can be influenced by factors such as payment terms negotiated with suppliers, cash flow management, and purchasing strategies.