Kratos Defense & Security Solutions (KTOS)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.35 | 12.18 | 11.73 | 11.63 | 9.83 | |
| Number of days of payables | days | 35.25 | 29.97 | 31.11 | 31.37 | 37.14 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.35
= 35.25
The analysis of Kratos Defense & Security Solutions' number of days of payables over the specified period reveals a trend characterized by both fluctuations and relative stability in its payment practices. As of December 31, 2020, the company’s payables period stood at approximately 37.14 days, indicating that, on average, Kratos paid its suppliers after about a month and a week. Over the subsequent year, this period decreased to 31.37 days by the end of December 2021, representing a reduction of roughly six days. This shorter payables period could suggest improved liquidity management or a strategic effort to settle liabilities more promptly.
The trend persisted into 2022, with the payables period marginally decreasing further to 31.11 days, maintaining a roughly month-long payout cycle. By December 31, 2023, the payables period continued to decline, reaching approximately 29.97 days, approaching a consistent payment timeframe closer to one month. This progression indicates a sustained effort to reduce accounts payable duration, possibly reflecting strengthened cash flow positions or improved negotiation terms with suppliers.
In contrast, the data for December 31, 2024, shows an increase to approximately 35.25 days. This uptick suggests a reversal of the prior trend towards shorter payment cycles, implying that the company extended its payables period by about five days relative to 2023. This increase could be motivated by strategic decisions to conserve cash, negotiate more favorable credit terms, or respond to changes in operational or financial circumstances.
Overall, the period from 2020 to 2024 demonstrates a dynamic payables management posture. The initial years observe a trend of decreasing days payable, indicative of more prompt payments, followed by a slight extension in 2024. Such variability underscores the company's responsiveness to external and internal factors influencing its payables strategy and liquidity management.
Peer comparison
Dec 31, 2024