Jack In The Box Inc (JACK)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	734,544	873,010	727,375	379,230	346,726
Payables	US$ in thousands	69,494	84,960	66,271	29,119	31,105
Payables turnover		10.57	10.28	10.98	13.02	11.15

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $734,544K ÷ $69,494K
= 10.57

The payables turnover ratio for Jack In The Box Inc has shown some fluctuations over the past five years. In general, the ratio has been relatively stable, ranging from a low of 10.28 to a high of 13.02. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance during a specific period.

A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could potentially indicate good relationships with suppliers, effective cash management, or favorable credit terms. Conversely, a lower ratio may signify delays in payment to suppliers, which could strain relationships or result in missed opportunities for discounts or other benefits.

Based on the trend observed in the payables turnover ratio for Jack In The Box Inc, there was a slight decrease in 2023 compared to 2022, followed by an increase in 2024. This could mean that the company has reduced the time it takes to pay its suppliers, potentially indicating improved financial health or efficiency in working capital management. However, further analysis and comparison with industry benchmarks would be necessary to draw more definitive conclusions about the company's payables management practices.