Kratos Defense & Security Solutions (KTOS)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 849,100 | 768,500 | 672,300 | 586,400 | 544,500 |
| Payables | US$ in thousands | 82,000 | 63,100 | 57,300 | 50,400 | 55,400 |
| Payables turnover | 10.35 | 12.18 | 11.73 | 11.63 | 9.83 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $849,100K ÷ $82,000K
= 10.35
The payables turnover ratio for Kratos Defense & Security Solutions has demonstrated a general upward trend over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio increased from 9.83 in 2020 to 11.63 in 2021, indicating an improvement in the company's ability to settle its trade payables more promptly. This upward movement continued into 2022, reaching a ratio of 11.73, which suggests a slight further enhancement in payment efficiency or possibly a reduction in average accounts payable or an increase in cost of goods sold.
In 2023, the ratio increased marginally again, reaching 12.18, implying that the company maintained or slightly improved its payables management, possibly indicating prompt supplier payments or increased sales leading to higher turnover of payables. However, in 2024, the ratio declined to 10.35. This decrease suggests a slowdown in payable turnover, which might reflect longer payment periods to suppliers, potential supply chain or liquidity considerations, or strategic changes in payment terms.
Overall, the observed fluctuations in the payables turnover ratio indicate that while Kratos has generally enhanced its payables management in the early part of the period, the decline in 2024 warrants further investigation to understand underlying causes such as shifts in payment practices, supplier negotiations, or changes in operational strategies.
Peer comparison
Dec 31, 2024