ODP Corp (ODP)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,856,000 | 3,790,000 | 3,953,000 | 4,074,000 | 6,206,000 | 6,202,000 | 6,187,000 | 6,554,000 | 6,768,000 | 6,774,000 | 7,132,000 | 7,384,000 | 7,720,000 | 7,718,000 | 7,955,000 | 7,935,000 | 8,036,000 | 8,062,000 | 8,172,000 | 8,158,000 |
| Payables | US$ in thousands | 755,000 | 818,000 | 864,000 | — | 821,000 | 853,000 | 917,000 | 975,000 | 950,000 | 863,000 | 979,000 | 959,000 | 919,000 | 1,038,000 | 991,000 | 1,006,000 | 1,026,000 | 1,037,000 | 1,089,000 | 1,098,000 |
| Payables turnover | 5.11 | 4.63 | 4.58 | — | 7.56 | 7.27 | 6.75 | 6.72 | 7.12 | 7.85 | 7.28 | 7.70 | 8.40 | 7.44 | 8.03 | 7.89 | 7.83 | 7.77 | 7.50 | 7.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,856,000K ÷ $755,000K
= 5.11
Payables turnover is a financial ratio that measures how quickly a company pays its suppliers. It is calculated by dividing the total purchases made by the average accounts payable balance. A higher payables turnover ratio indicates that the company is managing its payables more efficiently by paying its suppliers more quickly.
Based on the data provided, ODP Corp's payables turnover ratio has fluctuated over the past few quarters. In the most recent period, as of December 31, 2023, the payables turnover ratio stood at 5.11. This suggests that ODP Corp is taking around 5.11 times per year to pay off its suppliers.
Comparing the current ratio to historical data, we can observe that ODP Corp's payables turnover ratio has been relatively consistent over the past few years, hovering around the range of 7 to 8 times per year. This indicates that the company has been maintaining a stable relationship with its suppliers in terms of payment efficiency.
However, it is important to note the absence of data for the payables turnover ratio for March 31, 2023, which may limit the ability to draw a complete trend analysis for that specific quarter.
Overall, ODP Corp's payables turnover ratio suggests that the company has been managing its accounts payable effectively, with a consistent trend of paying suppliers in a timely manner.
Peer comparison
Dec 31, 2023