SpartanNash Co (SPTN)
Payables turnover
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,243,660 | 8,305,050 | 8,333,640 | 8,686,710 | 7,996,670 | 7,772,840 | 7,600,470 | 7,527,160 | 7,665,380 | 7,657,600 | 7,730,400 | 7,923,520 | 7,725,830 | 7,699,290 | 7,560,480 | 7,292,240 | 7,232,430 | 7,153,570 | 7,076,940 | 6,954,150 |
| Payables | US$ in thousands | 473,419 | 505,786 | 500,044 | 470,803 | 487,215 | 492,876 | 478,964 | 447,451 | 490,604 | 441,888 | 441,772 | 464,784 | 501,099 | 489,412 | 509,164 | 405,370 | 456,991 | 406,896 | 391,315 | 357,802 |
| Payables turnover | 17.41 | 16.42 | 16.67 | 18.45 | 16.41 | 15.77 | 15.87 | 16.82 | 15.62 | 17.33 | 17.50 | 17.05 | 15.42 | 15.73 | 14.85 | 17.99 | 15.83 | 17.58 | 18.09 | 19.44 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,243,660K ÷ $473,419K
= 17.41
The payables turnover ratio for SpartanNash Co has shown fluctuations over the past years, with values ranging from 14.85 to 19.44. The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating the number of times a company pays off its suppliers within a specific period.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may suggest a strong liquidity position or good relationships with suppliers. On the other hand, a lower ratio may indicate slower payment of accounts payable, potentially leading to strained supplier relationships or missed early payment discounts.
In the case of SpartanNash Co, the payables turnover ratio has generally been above 15, indicating a relatively efficient management of accounts payable. The company has shown a consistent ability to meet its payment obligations to suppliers in a timely manner over the years, which can enhance its reputation and maintain good relationships with vendors.
However, the fluctuations in the payables turnover ratio suggest that SpartanNash Co's payment practices may have varied over time. It is important for the company to monitor and manage its payables turnover to ensure a balance between timely payments and maintaining strong supplier relationships.
Peer comparison
Dec 31, 2023