Kratos Defense & Security Solutions (KTOS)
Payables turnover
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 874,100 | 853,400 | 848,700 | 843,200 | 811,100 | 775,200 | 754,500 | 730,000 | 705,000 | 676,900 | 639,100 | 602,400 | 587,500 | 586,400 | 588,400 | 593,300 | 564,600 | 544,500 | 529,100 | 519,700 |
| Payables | US$ in thousands | 82,700 | 82,000 | 61,000 | 58,800 | 61,900 | 63,100 | 57,400 | 58,400 | 54,900 | 57,300 | 53,500 | 58,200 | 51,700 | 50,400 | 43,600 | 59,900 | 51,900 | 55,400 | 54,700 | 44,900 |
| Payables turnover | 10.57 | 10.41 | 13.91 | 14.34 | 13.10 | 12.29 | 13.14 | 12.50 | 12.84 | 11.81 | 11.95 | 10.35 | 11.36 | 11.63 | 13.50 | 9.90 | 10.88 | 9.83 | 9.67 | 11.57 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $874,100K ÷ $82,700K
= 10.57
The payables turnover ratio for Kratos Defense & Security Solutions demonstrates notable fluctuations over the analyzed period, reflecting the company's evolving management of its accounts payable in relation to its cost of goods sold or purchases. Starting from a ratio of approximately 11.57 times as of June 30, 2020, the ratio experienced a decline, reaching a low of around 9.67 times by September 30, 2020, indicating a lengthening of the average payable period during that period. This trend persisted with fluctuations, as the ratio slightly increased to approximately 9.83 times by December 31, 2020, before rising again to 10.88 times as of March 31, 2021.
Subsequently, the ratio exhibited a varying pattern, with notable peaks such as approximately 13.50 times on September 30, 2021, and further increases to 11.63 times at the end of 2021 and to 11.36 times in March 2022. The ratio maintained an upward tendency in 2022, reaching an apex of approximately 13.14 times on September 30, 2023, and slightly decreasing to 12.29 times by the end of 2023.
In 2024, the ratio initially increased further, hitting approximately 14.34 times on June 30, before declining to around 10.41 times by December 31, and then slightly rising again to approximately 10.57 times in March 2025.
Overall, the observed pattern suggests periods of both stretching and shortening of the company's payables periods. When the ratio rises, it indicates that the company is paying its suppliers more slowly, potentially conserving cash but risking strained supplier relationships. Conversely, declines in the ratio suggest faster payments, which may reflect improved cash flow management or strategic supplier relations. The variability across periods indicates an active approach to managing payables, likely influenced by operational cash needs, supplier terms, or strategic financial planning considerations.
Peer comparison
Mar 31, 2025