Kontoor Brands Inc (KTB)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,279,170	2,300,670	2,289,480	2,194,930	1,997,800
Payables	US$ in thousands	179,680	180,220	206,262	214,204	167,240
Payables turnover		12.68	12.77	11.10	10.25	11.95

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,279,170K ÷ $179,680K
= 12.68

To analyze Kontoor Brands Inc's payables turnover, we look at how efficiently the company is managing its accounts payable. The payables turnover ratio measures how many times a company pays off its suppliers during a specific period.

Based on the data provided:
- On December 31, 2020, the payables turnover was 11.95 times.
- By December 31, 2021, the payables turnover decreased to 10.25 times.
- By December 31, 2022, it slightly improved to 11.10 times.
- By December 31, 2023, there was a significant increase to 12.77 times.
- Lastly, by December 31, 2024, it remained relatively high at 12.68 times.

A high payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying off its suppliers more frequently. This can be a positive sign of strong liquidity and good relationships with suppliers. However, a very high ratio may also suggest that the company is not utilizing available credit terms effectively.

Overall, Kontoor Brands Inc's payables turnover has shown fluctuations over the years but has generally remained at a healthy level, indicating effective management of payables and potentially positive supplier relationships. It is essential for investors and analysts to continue monitoring this ratio in conjunction with other financial metrics to assess the company's overall financial health and performance.