Korn Ferry (KFY)
Payables turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,043,100 | 2,177,010 | 266,927 | 131,136 | 81,929 |
| Payables | US$ in thousands | 58,884 | 50,112 | 53,386 | 50,932 | 44,993 |
| Payables turnover | 34.70 | 43.44 | 5.00 | 2.57 | 1.82 |
April 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,043,100K ÷ $58,884K
= 34.70
The payables turnover ratio for Korn Ferry exhibits a notable upward trend over the period from April 30, 2021, to April 30, 2025. Specifically, the ratio increased from 1.82 in 2021 to 2.57 in 2022, indicating a modest improvement in the company's ability to pay its suppliers within its operating cycle. This upward movement continues markedly with a ratio of 5.00 in 2023, signifying a more efficient management of payables relative to purchases or cost of goods sold.
The acceleration becomes particularly prominent in the subsequent years, with the ratio skyrocketing to 43.44 on April 30, 2024. This substantial increase suggests that Korn Ferry has significantly accelerated its payments to suppliers, potentially reflecting improvements in cash flow, strategic changes in payables management, or a reduction in the purchase cycle. The ratio remains elevated in 2025 at 34.70, indicating that while the payables turnover remains very high, there is a slight decrease from the peak observed in 2024.
Overall, the progressive increase in the payables turnover ratio suggests enhanced efficiency in settling trade payables, potentially driven by better cash management practices or changes in the company's procurement or supplier payment policies. The sharp rise in 2024 warrants further investigation into underlying operational or strategic shifts that may have contributed to such a steep change, as this could impact liquidity and working capital management.
Peer comparison
Apr 30, 2025