KBR Inc (KBR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,339,000 | 6,608,000 | 6,295,000 | 7,084,000 | 5,101,000 |
| Payables | US$ in thousands | 777,000 | 593,000 | 637,000 | 1,026,000 | 574,000 |
| Payables turnover | 9.45 | 11.14 | 9.88 | 6.90 | 8.89 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,339,000K ÷ $777,000K
= 9.45
To analyze KBR Inc's payables turnover, we look at how efficiently the company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance over a period.
The payables turnover ratios for KBR Inc for the years presented are as follows:
- December 31, 2020: 8.89
- December 31, 2021: 6.90
- December 31, 2022: 9.88
- December 31, 2023: 11.14
- December 31, 2024: 9.45
A higher payables turnover ratio typically indicates that the company is paying its suppliers more quickly, which can be advantageous in managing working capital and maintaining good relationships with suppliers. It indicates that the company is able to convert its accounts payable into cash more frequently during the year.
In this case, KBR Inc's payables turnover has generally been increasing over the years, which suggests an improvement in the efficiency of managing its accounts payable. The trend indicates that the company has been able to better streamline its payment processes and possibly negotiate better terms with suppliers.
However, it is essential to further assess the company's payment policies and supplier relationships to fully understand the implications of these ratios on KBR Inc's financial performance and operations.
Peer comparison
Dec 31, 2024