Tootsie Roll Industries Inc (TR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 667,537 | 576,215 | 503,643 | 412,819 | 458,276 |
| Payables | US$ in thousands | 15,816 | 25,246 | 14,969 | 13,025 | 12,720 |
| Payables turnover | 42.21 | 22.82 | 33.65 | 31.69 | 36.03 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $667,537K ÷ $15,816K
= 42.21
Tootsie Roll Industries, Inc.'s payables turnover has shown variation over the past five years. The payables turnover ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to average accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
In 2023, Tootsie Roll Industries, Inc.'s payables turnover ratio significantly increased to 32.41, indicating that the company was able to pay off its suppliers more rapidly compared to the previous year. This could be a positive sign as it indicates efficient management of accounts payable and potentially stronger supplier relationships.
In 2022, the payables turnover ratio was 17.99, which was lower than the following year. This lower ratio suggests that the company took longer to pay its suppliers compared to 2023, possibly impacting relationships with suppliers or cash flow management.
The payables turnover ratio in 2021 was 24.82, indicating an improvement from 2020 when it was 23.09. This increase suggests that the company was more successful in managing its accounts payable during the year, possibly through better negotiation with suppliers or improved internal processes.
In 2019, the payables turnover ratio was 25.95, showing that the company was relatively efficient in managing its accounts payable compared to 2022 and 2021, but slightly lower compared to 2023.
Overall, the increasing trend in payables turnover from 2020 to 2023 indicates potential improvements in managing accounts payable, which can positively impact the company's liquidity and relationships with suppliers. However, it is essential to evaluate the ratio in conjunction with other financial metrics to get a comprehensive understanding of Tootsie Roll Industries, Inc.'s financial performance and efficiency in managing its payables.
Peer comparison
Dec 31, 2023