Keurig Dr Pepper Inc (KDP)
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 | 12,982,000 | 12,083,000 | 11,989,000 | 11,952,000 | 12,020,000 | 12,260,000 | 12,572,000 | 12,535,000 | 12,202,000 | 11,930,000 | 11,154,000 | 10,579,000 | 10,395,000 | 9,752,000 | 9,597,000 | 9,536,000 | 9,513,000 | 9,345,000 | 9,371,000 | 9,258,000 |
| Payables | US$ in thousands | 2,985,000 | 3,133,000 | 3,099,000 | 3,187,000 | 3,597,000 | 4,090,000 | 4,601,000 | 4,947,000 | 5,206,000 | 5,284,000 | 4,950,000 | 4,510,000 | 4,316,000 | 4,072,000 | 3,976,000 | 3,871,000 | 3,740,000 | 3,517,000 | 3,377,000 | 3,238,000 |
| Payables turnover | 4.35 | 3.86 | 3.87 | 3.75 | 3.34 | 3.00 | 2.73 | 2.53 | 2.34 | 2.26 | 2.25 | 2.35 | 2.41 | 2.39 | 2.41 | 2.46 | 2.54 | 2.66 | 2.77 | 2.86 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,982,000K ÷ $2,985,000K
= 4.35
Payables turnover is a financial ratio that measures how efficiently a company pays its suppliers by analyzing how many times the company pays off its accounts payable balance over a specific period. For Keurig Dr Pepper Inc, the payables turnover ratio has been fluctuating over the quarters provided.
From March 31, 2020, to December 31, 2024, the payables turnover ratio has ranged from 2.35 to 4.35. The trend shows a general increase in the ratio, indicating that the company has been paying its suppliers faster over this period. This improvement in the payables turnover ratio could suggest that the company is managing its accounts payable more effectively, either by negotiating better payment terms or more efficiently processing payments.
A higher payables turnover ratio signifies that the company is taking less time to pay off its suppliers, which can often be interpreted positively as it may indicate strong liquidity or good relationships with vendors. However, excessively high ratios could also imply aggressive payment practices that may strain supplier relationships.
Overall, a rising trend in Keurig Dr Pepper Inc's payables turnover ratio indicates a positive development in the company's ability to manage its accounts payable efficiently over the analyzed period.
Peer comparison
Dec 31, 2024