Korn Ferry (KFY)
Payables turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,076,490 | 2,132,857 | 1,717,729 | 1,282,673 | 819,549 | 323,782 | 305,953 | 266,927 | 220,605 | 192,520 | 151,677 | 131,136 | 112,936 | 99,603 | 89,570 | 81,929 | 85,876 | 106,804 | 118,755 | 130,484 |
| Payables | US$ in thousands | 51,659 | 44,051 | 49,611 | 50,112 | 46,368 | 46,375 | 50,731 | 53,386 | 42,035 | 48,623 | 55,003 | 50,932 | 47,203 | 41,800 | 46,945 | 44,993 | 37,858 | 37,639 | 36,975 | 45,684 |
| Payables turnover | 40.20 | 48.42 | 34.62 | 25.60 | 17.67 | 6.98 | 6.03 | 5.00 | 5.25 | 3.96 | 2.76 | 2.57 | 2.39 | 2.38 | 1.91 | 1.82 | 2.27 | 2.84 | 3.21 | 2.86 |
January 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,076,490K ÷ $51,659K
= 40.20
The payables turnover ratio for Korn Ferry demonstrates notable variability across the specified periods, reflecting changes in the company's Accounts Payable management and supplier payment practices. From April 30, 2020, to October 31, 2020, the ratio remained relatively stable, fluctuating between 2.84 and 3.21, indicating a consistent approach to settling payables within the fiscal year 2020.
However, moving into 2021 and 2022, the ratio exhibited a gradual increase, reaching a peak of 3.96 on October 31, 2022. This upward trend suggests an improvement in the company's efficiency in paying suppliers, possibly reflecting more streamlined payables management or increased payment frequency to suppliers.
Starting from early 2023, significant growth in the payables turnover ratio became evident. The ratio jumped sharply from 5.25 on January 31, 2023, to 17.67 on January 31, 2024, and continued rising sharply through the subsequent quarters, reaching 25.60 by April 30, 2024, and 48.42 on October 31, 2024. This rapid escalation signifies a substantial increase in paying off accounts payable in relation to purchases, which may be indicative of shortened payment periods, enhanced cash flow management, or strategic changes in supplier payment terms.
By January 31, 2025, the ratio remains high at 40.20, maintaining the trend of accelerated payables turnover. Overall, the data reveals a consistent trend of increasing payables turnover over the analyzed period, especially pronounced from early 2023 onward, suggesting a strategic shift towards faster payments to suppliers or improved operational efficiencies in payables management.
Peer comparison
Jan 31, 2025