Kadant Inc (KAI)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 897,364 | 866,819 | 844,380 | 819,991 | 797,947 | 793,742 | 779,342 | 761,779 | 575,687 | 573,690 | 559,723 | 538,553 | 684,550 | 476,212 | 438,417 | 410,598 | 400,815 | 407,177 | 423,223 | 442,848 |
| Payables | US$ in thousands | 51,062 | 50,536 | 54,415 | 55,587 | 42,104 | 44,286 | 48,911 | 57,939 | 58,060 | 53,495 | 55,924 | 67,762 | 59,250 | 53,476 | 44,087 | 38,988 | 32,264 | 32,588 | 39,922 | 41,196 |
| Payables turnover | 17.57 | 17.15 | 15.52 | 14.75 | 18.95 | 17.92 | 15.93 | 13.15 | 9.92 | 10.72 | 10.01 | 7.95 | 11.55 | 8.91 | 9.94 | 10.53 | 12.42 | 12.49 | 10.60 | 10.75 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $897,364K ÷ $51,062K
= 17.57
The payables turnover ratio is a financial metric that indicates how efficiently a company is managing its outstanding payables by measuring how many times a company pays off its average accounts payable balance during a specific period.
Based on the data provided for Kadant Inc's payables turnover ratio over the past few quarters, we observe fluctuations in the ratio:
- The payables turnover ratio ranged from around 7.95 to 18.95 during the period from March 31, 2022, to December 31, 2024.
- The ratio showed a decreasing trend from March 31, 2022, to September 30, 2023, hitting a low of 7.95 and then experiencing a significant increase to reach 18.95 by December 31, 2023.
- However, after peaking at 18.95 by the end of December 31, 2023, the payables turnover ratio started to decline in the subsequent quarters, though it remained relatively high compared to the earlier periods.
These fluctuations suggest variations in Kadant Inc's ability to efficiently manage its accounts payable over different periods. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could be reflective of strong liquidity or effective cash management. Conversely, a lower payables turnover ratio may imply that the company is taking longer to pay its suppliers, potentially indicating liquidity challenges or negotiating favorable payment terms.
It is essential for investors and stakeholders to closely monitor Kadant Inc's payables turnover ratio trends over time to assess its liquidity position, operational efficiency, and relationship with suppliers.
Peer comparison
Dec 31, 2024