Kenvue Inc. (KVUE)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,888,000 | 10,864,000 | 10,848,000 | 10,329,000 | 8,617,000 |
| Payables | US$ in thousands | 2,254,000 | 2,274,000 | 2,437,000 | 2,602,000 | 2,489,000 |
| Payables turnover | 6.16 | 4.78 | 4.45 | 3.97 | 3.46 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,888,000K ÷ $2,254,000K
= 6.16
The payables turnover ratio for Kenvue Inc. has shown a steady increase over the past year. As of December 31, 2023, the ratio stood at 3.46 and gradually improved to 6.16 by the end of December 31, 2024. This indicates that the company is managing its accounts payable more efficiently, with suppliers being paid off more frequently throughout the year. A higher payables turnover ratio typically suggests that the company is effectively managing its working capital and maintaining good relationships with its suppliers. It may also imply that Kenvue Inc. is taking advantage of trade credit terms to optimize cash flow and liquidity. The upward trend in payables turnover is a positive indicator of the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024