Skechers USA Inc (SKX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,397,480 | 7,051,600 | 5,851,580 | 4,622,560 | 4,835,620 |
| Payables | US$ in thousands | 1,008,000 | 957,384 | 876,342 | 744,077 | 764,844 |
| Payables turnover | 7.34 | 7.37 | 6.68 | 6.21 | 6.32 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,397,480K ÷ $1,008,000K
= 7.34
The payables turnover ratio measures how efficiently Skechers U S A, Inc. manages its accounts payable by evaluating the number of times the company pays off its suppliers in a given period. A higher payables turnover ratio indicates that the company is taking less time to settle its outstanding payables.
Looking at the trend over the past five years, Skechers U S A, Inc.'s payables turnover ratio has shown some fluctuations. In 2023, the payables turnover ratio decreased to 3.82 from 4.10 in 2022, indicating that the company took slightly longer to pay off its suppliers compared to the previous year.
Despite the slight decrease in 2023, Skechers U S A, Inc. has generally maintained a consistent payables turnover ratio above 3, which suggests that the company efficiently manages its accounts payable by paying its suppliers multiple times throughout the year. This could indicate strong relationships with suppliers and effective working capital management practices.
Overall, the payables turnover ratio analysis suggests that Skechers U S A, Inc. has been effective in managing its accounts payable over the years, maintaining a relatively stable turnover ratio and demonstrating efficiency in handling its payment obligations to suppliers.
Peer comparison
Dec 31, 2023