Kontoor Brands Inc (KTB)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	2,279,946	2,258,674	2,253,712	2,279,380	2,301,854	2,349,627	2,325,712	2,290,131	2,289,479	2,254,937	2,276,112	2,207,146	2,194,929	2,189,315	2,125,669	2,046,651	2,005,188	2,000,957	2,073,359	2,252,287
Payables	US$ in thousands	179,680	201,863	196,460	187,200	180,220	182,448	195,282	163,871	206,262	306,278	281,391	266,974	214,204	244,681	198,697	194,891	167,240	207,564	108,745	149,922
Payables turnover		12.69	11.19	11.47	12.18	12.77	12.88	11.91	13.98	11.10	7.36	8.09	8.27	10.25	8.95	10.70	10.50	11.99	9.64	19.07	15.02

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,279,946K ÷ $179,680K
= 12.69

The payables turnover ratio measures how efficiently Kontoor Brands Inc is managing its payments to suppliers. A higher payables turnover indicates that the company is paying its suppliers more frequently, which can suggest good financial health and effective working capital management.

Analyzing the data provided, we can observe fluctuations in Kontoor Brands Inc's payables turnover over the periods. The ratio ranged from a high of 19.07 in June 30, 2020, to a low of 7.36 in September 30, 2022. Notably, the company experienced a significant decrease in payables turnover from 19.07 in June 30, 2020, to 7.36 in September 30, 2022, which could indicate a change in the company's payment policies or supplier relationships during that period.

Subsequently, the payables turnover ratio showed some recovery but continued to fluctuate between 8.27 in March 31, 2022, and 13.98 in March 31, 2023. Overall, the trend in payables turnover indicates variations in how efficiently Kontoor Brands Inc is managing its payments to suppliers over the analyzed periods.

It is essential for stakeholders to closely monitor changes in the payables turnover ratio as it can provide insights into the company's liquidity position, operational efficiency, and supplier relationships.