J & J Snack Foods Corp (JJSF)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,289,560 | 1,283,100 | 1,162,510 | 968,340 | 783,611 |
| Payables | US$ in thousands | 89,268 | 90,758 | 108,146 | 96,789 | 73,135 |
| Payables turnover | 14.45 | 14.14 | 10.75 | 10.00 | 10.71 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,289,560K ÷ $89,268K
= 14.45
The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times a company pays off its suppliers in a given period. A higher payables turnover ratio indicates that the company is able to pay off its suppliers more frequently within a year.
J & J Snack Foods Corp's payables turnover has been consistently increasing over the past five years from 10.71 in 2020 to 14.45 in 2024. This signifies an improvement in the company's ability to settle its payables faster. A higher payables turnover ratio may suggest that the company is managing its accounts payable effectively, possibly negotiating better payment terms with suppliers or having strong cash flow to meet obligations promptly.
The trend of increasing payables turnover indicates operational efficiency and effective management of working capital by J & J Snack Foods Corp. It is important for investors and stakeholders to monitor this ratio as it reflects the company's liquidity, financial health, and ability to manage its working capital effectively.