Kontoor Brands Inc (KTB)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,300,670	2,289,480	2,194,930	1,997,800	2,397,470
Payables	US$ in thousands	180,220	206,262	214,204	167,240	147,347
Payables turnover		12.77	11.10	10.25	11.95	16.27

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,300,670K ÷ $180,220K
= 12.77

The payables turnover ratio for Kontoor Brands Inc has shown a fluctuating trend over the past five years. In 2019, the company had a relatively high payables turnover of 16.27, indicating that it was paying off its accounts payable obligations more frequently during that period. However, this ratio decreased in the following years, reaching a low of 10.25 in 2021.

In 2022 and 2023, the payables turnover ratio increased to 11.10 and 12.77, respectively. This suggests that Kontoor Brands Inc has been able to manage its accounts payable more efficiently in these years, possibly by negotiating better payment terms with suppliers or optimizing its working capital management.

Overall, the upward trend in the payables turnover ratio in the recent years may indicate improved liquidity and cash flow management for the company. However, it is essential to consider other factors such as industry norms and specific company strategies to gain a comprehensive understanding of Kontoor Brands Inc's payables turnover performance.