ODP Corp (ODP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,746,000 | 8,384,000 | 8,370,000 | 10,119,000 | 10,634,000 |
| Payables | US$ in thousands | 755,000 | 821,000 | 950,000 | 919,000 | 1,026,000 |
| Payables turnover | 10.26 | 10.21 | 8.81 | 11.01 | 10.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,746,000K ÷ $755,000K
= 10.26
Payables turnover measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its suppliers during a specific period. A higher payables turnover indicates that the company is paying its suppliers more frequently.
Between 2019 and 2023, ODP Corp's payables turnover has varied, with the ratio ranging from 8.81 to 11.01. The peak was observed in 2020, where the company paid its suppliers 11.01 times during the year. This high turnover rate suggests that ODP Corp efficiently manages its payables by paying off suppliers promptly.
Overall, ODP Corp's payables turnover has been relatively stable over the years, indicating consistent management of accounts payable. The fluctuations in the ratio may be influenced by changes in the company's payment terms with suppliers, purchasing patterns, or business operations. Further analysis of ODP Corp's financial statements and industry benchmarks would provide more context on the company's payables management effectiveness.
Peer comparison
Dec 31, 2023