Korn Ferry (KFY)
Payables turnover
| Apr 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,043,099 | 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 |
| Payables | US$ in thousands | 58,884 | 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 |
| Payables turnover | 34.70 | 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 |
April 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,043,099K ÷ $58,884K
= 34.70
The analysis of Korn Ferry’s payables turnover over the specified periods reveals a notable trend of overall increase with some variability. Initially, the ratio declined from 3.21 as of July 31, 2020, to a low of approximately 1.82 by April 30, 2021, indicating a period where the company was taking longer to pay its suppliers relative to its cost of goods sold or purchases.
Subsequently, the ratio generally stabilized and showed a modest upward trend through late 2021 and early 2022, reaching approximately 2.39 by January 31, 2022, and continuing to gradually increase through mid-2022 to around 2.76 by July 31, 2022. The acceleration in payables turnover becomes evident in late 2022 and early 2023, with the ratio rising sharply from about 3.96 in October 2022 to 5.25 in January 2023.
This upward movement persisted into 2023 and 2024, with the ratio escalating significantly, reaching 17.67 by January 31, 2024, and further climbing to 48.42 by October 31, 2024. This dramatic increase suggests a substantial reduction in the days payable outstanding or a significant change in payment practices, perhaps due to improved liquidity, changes in supplier payment terms, or strategic shifts to settle payables more swiftly.
Following this peak, the ratio exhibits some fluctuation but overall remains elevated compared to historical levels, recorded at 40.20 in January 2025, indicating continued acceleration in settling payables.
In summary, the payables turnover ratio demonstrates a long-term increasing trend, especially notable from late 2022 onwards, reflecting a pattern of faster payments to suppliers or shifts in operating cycle management. The steep rise in recent periods warrants further investigation into changes in payment policies, supplier negotiations, or financial strategy.
Peer comparison
Apr 30, 2025