Callaway Golf Company (MODG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,114,400 | 1,045,700 | 882,499 | 1,738,030 | 1,616,010 |
| Payables | US$ in thousands | 130,700 | 159,100 | 138,700 | 66,282 | 67,843 |
| Payables turnover | 8.53 | 6.57 | 6.36 | 26.22 | 23.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,114,400K ÷ $130,700K
= 8.53
The payables turnover ratio for Topgolf Callaway Brands Corp has fluctuated over the years as follows: 12.48 in 2023, 9.96 in 2022, 9.16 in 2021, 14.06 in 2020, and 13.77 in 2019.
The payables turnover ratio measures how efficiently a company is managing its trade payables. A higher ratio typically indicates the company is paying its suppliers more quickly, which can be a sign of strong liquidity and good relationships with suppliers.
In this case, the trend shows some variability in the payables turnover ratio from year to year. The increase in the ratio from 2021 to 2020 suggests that the company was paying its suppliers more rapidly in 2020. However, the decrease in the ratio in 2022 and 2023 indicates a slower rate of paying off trade payables in those years, which could potentially strain relationships with suppliers or indicate a shift in the company's payment policies.
Overall, further analysis of the company's financial and operational activities would be needed to determine the reasons behind these fluctuations in the payables turnover ratio and to assess the impact on the company's financial health and supplier relationships.
Peer comparison
Dec 31, 2023