Albertsons Companies (ACI)
Payables turnover
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 58,135,300 | 58,804,200 | 55,894,100 | 51,164,600 | 49,275,900 |
| Payables | US$ in thousands | 4,092,700 | 4,218,200 | 4,173,100 | 4,236,800 | 3,487,300 |
| Payables turnover | 14.20 | 13.94 | 13.39 | 12.08 | 14.13 |
February 28, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $58,135,300K ÷ $4,092,700K
= 14.20
The payables turnover ratio for Albertsons Companies has demonstrated a relatively stable pattern over the period from February 2021 to February 2025. In detail, the ratio was 14.13 times as of February 28, 2021, representing how many times the company settled its accounts payable within a year. By February 28, 2022, the ratio declined to 12.08, indicating a decrease in the frequency of payables being turned over within the fiscal year. This decline may suggest a lengthening of the average payment period to suppliers or changes in payment strategy during that period.
Subsequently, the payables turnover showed signs of recovery, rising to 13.39 by February 28, 2023. This increase reflects a possible normalization or improvement in payment cycles relative to the previous year. Continuing this trend, the ratio further increased to 13.94 as of February 29, 2024, indicating a slight acceleration in the turnover of payables. By February 28, 2025, the ratio reached 14.20, surpassing the 2021 level and suggesting a further reduction in the average days payable outstanding.
Overall, the trend suggests that Albertsons Companies’ payables turnover ratio experienced a dip in 2022 but generally recovered and slightly improved through to 2025. This pattern may imply strategic shifts towards more prompt payments to suppliers or a restructuring of payment terms aimed at optimizing cash flow management. The ratios staying in a relatively narrow range across the period indicate consistency in the company’s approach to managing its trade payables.
Peer comparison
Feb 28, 2025