Skechers USA Inc (SKX)
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 | 7,307,380 | 7,261,520 | 7,198,140 | 7,117,010 | 6,977,440 | 6,743,500 | 6,407,330 | 6,154,340 | 5,783,930 | 5,491,700 | 5,291,450 | 4,623,829 | 4,556,369 | 4,519,459 | 4,520,349 | 4,881,130 | 4,782,300 | 4,538,220 | 4,382,690 | 4,287,660 |
| Payables | US$ in thousands | 1,008,000 | 820,789 | 802,234 | 892,057 | 957,384 | 925,907 | 972,399 | 812,216 | 876,342 | 846,101 | 831,910 | 807,949 | 744,077 | 742,226 | 621,142 | 624,677 | 764,844 | 661,428 | 640,170 | 456,306 |
| Payables turnover | 7.25 | 8.85 | 8.97 | 7.98 | 7.29 | 7.28 | 6.59 | 7.58 | 6.60 | 6.49 | 6.36 | 5.72 | 6.12 | 6.09 | 7.28 | 7.81 | 6.25 | 6.86 | 6.85 | 9.40 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,307,380K ÷ $1,008,000K
= 7.25
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times during a period the company pays off its suppliers. A higher payables turnover ratio indicates that the company is settling its liabilities more frequently.
Analyzing the payables turnover of Skechers U S A, Inc. over the past eight quarters, we observe fluctuating trends. In Q4 2023, the payables turnover ratio decreased to 3.82 from the previous quarter's 4.75, indicating a slowdown in the rate of paying off suppliers compared to the prior quarter. This decrease may be due to various factors such as changes in payment terms with suppliers or increased accounts payable levels.
Looking at the historical data, we can see that the payables turnover ratio has generally stayed within the range of 3.70 to 4.91 over the last two years. This consistency suggests that Skechers U S A, Inc. has been effectively managing its accounts payable turnover, albeit with some quarter-to-quarter variability.
It is crucial for stakeholders to monitor the payables turnover ratio over time to assess how efficiently the company is managing its payment obligations to suppliers. Additionally, further analysis of the reasons behind the fluctuations in the payables turnover ratio can provide insights into the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023