Callaway Golf Company (MODG)
Payables turnover
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,172,300 | 1,099,500 | 1,094,300 | 1,115,800 | 1,116,300 | 1,116,100 | 1,106,100 | 1,077,500 | 1,050,600 | 1,027,817 | 1,007,498 | 969,556 | 877,349 | 1,099,847 | 1,275,683 | 1,510,916 | 1,737,859 | 1,675,538 | 1,646,424 | 1,570,306 |
| Payables | US$ in thousands | 96,400 | 123,100 | 116,400 | 133,200 | 130,700 | 103,100 | 129,500 | 228,200 | 159,100 | 155,400 | 173,300 | 167,500 | 138,700 | 126,643 | 111,255 | 138,665 | 66,282 | — | — | — |
| Payables turnover | 22.53 | 8.93 | 9.40 | 8.38 | 8.54 | 10.83 | 8.54 | 4.72 | 6.60 | 6.61 | 5.81 | 5.79 | 6.33 | 8.68 | 11.47 | 10.90 | 26.22 | — | — | — |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,172,300K ÷ $96,400K
= 22.53
The payables turnover ratio is a financial metric that indicates how efficiently a company is managing its accounts payable by measuring the number of times a company pays off its suppliers during a specific period. A higher payables turnover ratio generally indicates that a company is paying its suppliers more frequently, which can be a positive sign of strong liquidity and good relationships with suppliers.
Analyzing the payables turnover ratio for Callaway Golf Company from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over the period. The data suggests that there was no information available for the payables turnover ratio for the first part of the period.
From December 31, 2020, the payables turnover ratio was at 26.22 times, demonstrating that Callaway Golf was paying off its suppliers almost 27 times during that period. This high ratio may indicate efficient management of accounts payable.
However, from March 31, 2021, to December 31, 2024, the payables turnover ratio fluctuated, showing a decreasing trend overall. The ratio declined to 22.53 by December 31, 2024, indicating that the company was paying its suppliers around 22.5 times during the period.
The decreasing trend in the payables turnover ratio could imply that Callaway Golf was taking longer to pay its suppliers, which may be a cause for concern as it could potentially strain relationships with suppliers or indicate liquidity issues.
Overall, a decreasing trend in the payables turnover ratio should be further investigated to understand the reasons behind the change and determine if there are any underlying issues affecting the company's ability to manage its accounts payable efficiently.
Peer comparison
Dec 31, 2024