LCI Industries (LCII)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,008,620	3,933,850	3,429,660	2,090,080	1,832,280
Payables	US$ in thousands	183,697	143,529	282,183	184,931	99,262
Payables turnover		16.38	27.41	12.15	11.30	18.46

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,008,620K ÷ $183,697K
= 16.38

The payables turnover ratio for LCI Industries has fluctuated over the past five years. In 2023, the payables turnover ratio was 16.38, which indicates that the company paid its accounts payable approximately 16.38 times during the year. This represents a decrease from the 2022 ratio of 27.41, suggesting that the company took longer to pay its suppliers in 2023 compared to the previous year.

The payables turnover ratio of 16.38 in 2023 is higher than the ratios in 2021 and 2020 (12.15 and 11.30, respectively) but lower than the ratio in 2019 (18.46). This indicates that LCI Industries improved its efficiency in managing its accounts payable in 2023 compared to 2021 and 2020 but was less efficient in this aspect compared to 2019.

Overall, a higher payables turnover ratio generally indicates that a company is efficiently managing its accounts payable by paying them off quickly. However, a significantly high ratio may also suggest that the company is being overly aggressive in paying its suppliers, which could impact cash flow or relationships with suppliers. The fluctuation in LCI Industries' payables turnover ratio over the years indicates changes in the company's payment practices and could be influenced by various factors such as purchasing patterns, negotiation with suppliers, and overall financial management strategies.