US Foods Holding Corp (USFD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 34,922,000 | 33,788,000 | 29,383,000 | 23,278,000 | 25,564,000 |
| Payables | US$ in thousands | 2,051,000 | 1,855,000 | 1,662,000 | 1,218,000 | 1,460,000 |
| Payables turnover | 17.03 | 18.21 | 17.68 | 19.11 | 17.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $34,922,000K ÷ $2,051,000K
= 17.03
The payables turnover ratio measures how efficiently US Foods Holding Corp manages its accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period.
US Foods Holding Corp experienced a slight decrease in payables turnover from 2022 to 2023, with the ratio falling from 18.21 to 17.03. This may suggest that the company took longer to pay its suppliers in 2023 compared to the previous year. However, the payables turnover ratio of 17.03 still indicates that the company efficiently manages its accounts payable, turning over its payables approximately 17 times during the year.
Looking at the trend over the past five years, US Foods Holding Corp has maintained a relatively stable payables turnover ratio, ranging from a low of 17.03 in 2023 to a high of 19.11 in 2020. This consistency suggests that the company has been effectively utilizing its payables in its operations.
Overall, based on the payables turnover values provided, US Foods Holding Corp demonstrates efficiency in managing its payables, with a consistent and acceptable turnover ratio over the years.
Peer comparison
Dec 31, 2023