The Coca-Cola Company (KO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,520,000 | 18,000,000 | 15,357,000 | 13,433,000 | 14,619,000 |
| Payables | US$ in thousands | 5,590,000 | 6,241,000 | 5,720,000 | 4,654,000 | 3,804,000 |
| Payables turnover | 3.31 | 2.88 | 2.68 | 2.89 | 3.84 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $18,520,000K ÷ $5,590,000K
= 3.31
The payables turnover ratio for Coca-Cola Co has been relatively stable over the past five years, ranging from 3.31 to 3.84. This ratio indicates how many times the company pays off its accounts payable during a certain period. A higher ratio suggests that the company is managing its payables efficiently by effectively using its suppliers' credit terms.
Coca-Cola Co's payables turnover decreased slightly in 2023 compared to the previous year, which may indicate a slight slowdown in the company's ability to settle its accounts payable. However, it is important to consider other factors such as changes in purchasing policies or payment terms with suppliers that could impact this ratio.
Overall, a consistent payables turnover ratio demonstrates the company's ability to maintain good relationships with its suppliers and effectively manage its working capital. Further analysis of industry benchmarks and trends could provide additional insights into Coca-Cola Co's payables management performance.
Peer comparison
Dec 31, 2023