Wingstop Inc (WING)

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	186,242	173,415	165,156	155,234	132,656	130,065	127,881	129,306	122,611	126,279	125,139	121,447	119,868	111,848	106,628	104,014	100,800	94,569	89,028	82,884
Payables	US$ in thousands	4,725	5,104	6,112	6,848	5,219	3,497	3,121	4,931	5,414	4,382	3,812	3,666	3,658	2,343	2,890	3,881	3,348	2,359	2,524	2,190
Payables turnover		39.42	33.98	27.02	22.67	25.42	37.19	40.97	26.22	22.65	28.82	32.83	33.13	32.77	47.74	36.90	26.80	30.11	40.09	35.27	37.85

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $186,242K ÷ $4,725K
= 39.42

The payables turnover ratio for Wingstop Inc has shown fluctuations over the past five years, ranging from a low of 22.65 to a high of 40.97. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a certain period.

A higher payables turnover ratio generally indicates that the company is more efficient in paying off its suppliers, which can be seen in the higher ratios observed in some quarters. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could impact relationships with vendors.

Overall, the trend in Wingstop Inc's payables turnover ratio indicates variability in the company's payment practices. It would be beneficial for the company to closely monitor and manage its payables turnover ratio to ensure efficient management of its accounts payable and maintain healthy relationships with its suppliers.