Knowles Cor (KN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 318,700 | 424,200 | 488,400 | 508,600 | 493,100 |
| Payables | US$ in thousands | 58,500 | 35,900 | 41,400 | 90,900 | 70,300 |
| Payables turnover | 5.45 | 11.82 | 11.80 | 5.60 | 7.01 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $318,700K ÷ $58,500K
= 5.45
Based on the data provided, the payables turnover for Knowles Cor has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance during a period.
In December 2020, the payables turnover ratio was 7.01, indicating that Knowles Cor was able to pay off its accounts payable balance approximately 7 times during that year. However, by December 2021, the ratio decreased to 5.60, suggesting a decrease in the frequency of paying off accounts payable.
In the following years, there was a significant improvement in the payables turnover ratio. By December 2022, the ratio increased sharply to 11.80, indicating that Knowles Cor improved its efficiency in managing accounts payable by paying them off almost 12 times during that year. This positive trend continued into December 2023 and December 2024, with the ratios further increasing to 11.82 and 5.45, respectively.
Overall, the payables turnover ratio for Knowles Cor improved significantly from 2021 to 2023, reflecting better management of accounts payable and a more efficient use of working capital. The slight decrease in 2024 compared to 2023 might suggest a need for monitoring to ensure continued efficiency in managing payables going forward.
Peer comparison
Dec 31, 2024