KBR Inc (KBR)
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 | 6,540,000 | 6,437,000 | 6,289,000 | 6,188,000 | 6,229,000 | 7,092,000 | 7,331,000 | 7,246,000 | 7,008,000 | 5,900,000 | 5,363,000 | 5,171,000 | 5,101,000 | 5,082,000 | 5,131,000 | 5,150,000 | 4,986,000 | 4,878,000 | 4,751,000 | 4,595,000 |
| Payables | US$ in thousands | 593,000 | 687,000 | 726,000 | 755,000 | 637,000 | 557,000 | 647,000 | 630,000 | 1,026,000 | 964,000 | 633,000 | 600,000 | 574,000 | 584,000 | 593,000 | 693,000 | 572,000 | 624,000 | 611,000 | 580,000 |
| Payables turnover | 11.03 | 9.37 | 8.66 | 8.20 | 9.78 | 12.73 | 11.33 | 11.50 | 6.83 | 6.12 | 8.47 | 8.62 | 8.89 | 8.70 | 8.65 | 7.43 | 8.72 | 7.82 | 7.78 | 7.92 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,540,000K ÷ $593,000K
= 11.03
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount a company owes to its suppliers to its cost of goods sold (COGS). A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Analyzing the payables turnover ratio of KBR Inc over the past several quarters, we observe fluctuation in the values. The payables turnover ratio has been on an overall increasing trend from December 2019 to December 2023, with occasional fluctuations.
In recent quarters, the payables turnover has shown improvement, particularly from March 2020 to September 2022, where the ratio consistently increased. This suggests that KBR Inc has been more efficient in paying its suppliers during this period.
However, in the latest quarter (December 2023), the payables turnover ratio decreased compared to the previous quarter (September 2023). This might indicate that KBR Inc has extended its payment period to suppliers or is managing its payables less efficiently.
Overall, a higher payables turnover ratio is generally preferred as it indicates that the company is managing its payables effectively, but it is essential to strike a balance to maintain good relationships with suppliers. Ongoing monitoring of this ratio will be crucial to assess KBR Inc's financial health and operational efficiency in managing its payables.
Peer comparison
Dec 31, 2023