YETI Holdings Inc (YETI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 715,527 | 831,821 | 594,876 | 462,918 | 438,420 |
| Payables | US$ in thousands | 190,392 | 140,818 | 191,319 | 123,621 | 83,823 |
| Payables turnover | 3.76 | 5.91 | 3.11 | 3.74 | 5.23 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $715,527K ÷ $190,392K
= 3.76
The payables turnover ratio for YETI Holdings Inc has fluctuated over the past five years, ranging from 3.11 to 5.91. This ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance.
In 2023, the payables turnover ratio decreased to 3.76 from the previous year's 5.91, indicating that the company took longer to pay its suppliers compared to 2022. Despite the drop, the 2023 ratio is still higher than the ratios reported in 2021 and 2020, reflecting an improvement in the management of payables in those years.
Overall, YETI Holdings Inc may need to focus on optimizing its accounts payable processes to enhance efficiency and possibly negotiate better terms with suppliers in order to lower the payables turnover ratio and improve working capital management in the future.
Peer comparison
Dec 31, 2023