Molson Coors Brewing Co Class B (TAP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,785,800 | 11,157,800 | 9,565,000 | 7,955,500 | 8,807,900 |
| Payables | US$ in thousands | 2,149,800 | 2,068,200 | 2,098,100 | 1,732,700 | 1,686,800 |
| Payables turnover | 5.02 | 5.39 | 4.56 | 4.59 | 5.22 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,785,800K ÷ $2,149,800K
= 5.02
Molson Coors Beverage Company's payables turnover ratio has shown fluctuation over the last five years. In 2023 and 2022, the payables turnover ratio remained constant at 3.41, implying that the company took approximately 3.41 times to pay off its accounts payable during these periods.
In 2021, there was a slight decrease in the payables turnover ratio to 2.97, indicating a longer period taken by the company to settle its payables compared to the previous year. This may suggest a potential liquidity strain or a change in the company's payment policies during that year.
The payables turnover ratio rebounded in 2020 to 3.40 after a decrease in 2019 to 4.07. The decrease in 2019 could indicate that Molson Coors Beverage Company took less time to pay off its accounts payable that year, possibly due to improved cash flow management or negotiation with suppliers.
Overall, fluctuations in the payables turnover ratio can provide insights into the company's efficiency in managing its accounts payable. A higher ratio typically indicates that the company is efficient in paying its short-term obligations, while a lower ratio may suggest potential liquidity issues or changes in payment practices.
Peer comparison
Dec 31, 2023