Kellanova (K)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	8,839,000	8,842,000	12,456,000	9,043,000	9,197,000
Payables	US$ in thousands	2,314,000	2,568,000	2,573,000	2,471,000	2,387,000
Payables turnover		3.82	3.44	4.84	3.66	3.85

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $8,839,000K ÷ $2,314,000K
= 3.82

Examining the payables turnover ratio of Kellanova over the past five years reveals a fluctuating trend. The ratio decreased from 3.85 in 2019 to 3.66 in 2020 before experiencing a notable increase to 4.84 in 2021. However, in the subsequent years, the ratio declined to 3.44 in 2022 and then slightly rebounded to 3.82 in 2023.

The payables turnover ratio indicates the efficiency with which a company manages its trade credit or accounts payable. A higher ratio typically suggests that the company is paying its suppliers more quickly, which can be advantageous in terms of maintaining good relationships with suppliers and potentially negotiating favorable credit terms.

In the case of Kellanova, the fluctuations in the payables turnover ratio may reflect changes in the company's payment policies or its relationships with suppliers. Further investigation into the underlying reasons for these fluctuations is necessary to gain a deeper understanding of Kellanova's payment practices and financial management.