Kellanova (K)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	8,839,000	8,977,000	9,135,000	10,327,000	11,124,000	12,025,000	12,897,000	12,499,000	12,456,000	11,617,000	10,670,000	9,887,000	9,043,000	8,899,000	9,043,000	9,050,000	9,197,000	9,290,000	9,211,000	9,087,000
Payables	US$ in thousands	2,314,000	2,789,000	2,810,000	2,900,000	2,568,000	2,871,000	2,866,000	2,705,000	2,573,000	2,526,000	2,491,000	2,476,000	2,471,000	2,449,000	2,393,000	2,329,000	2,387,000	2,338,000	2,401,000	2,370,000
Payables turnover		3.82	3.22	3.25	3.56	4.33	4.19	4.50	4.62	4.84	4.60	4.28	3.99	3.66	3.63	3.78	3.89	3.85	3.97	3.84	3.83

December 31, 2023 calculation

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

The payables turnover ratio for Kellanova has exhibited some fluctuations over the past few years, ranging from a low of 3.22 to a high of 4.84. The general trend shows a decrease in the ratio from 4.84 at the end of December 2021 to 3.82 at the end of December 2023. This indicates that the company is taking longer to pay its suppliers compared to previous periods.

A payables turnover ratio of less than 4 suggests that Kellanova is taking more than 3 months on average to pay its accounts payable. This could indicate potential liquidity issues or strained relationships with suppliers.

It is important for Kellanova to closely monitor this ratio and work towards improving it by managing its accounts payable efficiently. Timely payments to suppliers are crucial to maintaining good relationships and securing favorable credit terms in the future.