Wingstop Inc (WING)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	211,733	204,345	188,353	176,353	170,244	157,417	149,158	139,236	132,656	130,065	127,881	129,306	122,611	126,279	125,139	121,447	119,868	111,848	106,628	104,014
Payables	US$ in thousands	6,943	10,301	5,752	6,444	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
Payables turnover		30.50	19.84	32.75	27.37	36.03	30.84	24.40	20.33	25.42	37.19	40.97	26.22	22.65	28.82	32.83	33.13	32.77	47.74	36.90	26.80

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $211,733K ÷ $6,943K
= 30.50

The payables turnover ratio of Wingstop Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates how many times a company pays its accounts payable during a specific period, reflecting the efficiency of managing its short-term liabilities.

The payables turnover ratio increased from 26.80 on March 31, 2020, to a peak of 47.74 on September 30, 2020. This suggests that Wingstop improved its ability to pay off its suppliers more frequently in the latter part of 2020. Subsequently, the ratio decreased to 22.65 on December 31, 2021, before recovering to higher levels in the following quarters.

The company's payables turnover ratio remained relatively stable around the 30s for most of the period, indicating consistent management of accounts payable. However, there were some instances of significant changes, such as the decrease to 19.84 on September 30, 2024, suggesting a possible delay in paying suppliers during that period.

Overall, the trend in Wingstop Inc's payables turnover ratio indicates varying degrees of efficiency in managing its accounts payable, with some quarters showing improvements while others experiencing fluctuations. Further analysis of the company's payment policies and supplier relationships may provide additional insights into its financial operations.