American Eagle Outfitters Inc (AEO)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,209,160 | 5,016,660 | 4,668,270 | 4,141,070 | 4,282,480 |
| Payables | US$ in thousands | 268,308 | 234,340 | 231,782 | 255,912 | 285,746 |
| Payables turnover | 19.41 | 21.41 | 20.14 | 16.18 | 14.99 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,209,160K ÷ $268,308K
= 19.41
The payables turnover ratio for American Eagle Outfitters Inc has shown an increasing trend over the past five years, indicating that the company is managing its accounts payable more efficiently.
In the latest fiscal year, as of February 3, 2024, the payables turnover ratio stood at 19.41, which is higher compared to the previous year. This implies that the company is paying off its suppliers or vendors approximately 19.41 times during the year, demonstrating a faster rate of clearing its accounts payable balance.
The improvement in the payables turnover ratio suggests that American Eagle Outfitters Inc is effectively managing its cash flow and working capital by paying its suppliers in a timely manner. This may help the company maintain good relationships with its suppliers and potentially negotiate better payment terms in the future.
Overall, the increasing trend in the payables turnover ratio reflects positively on the company's liquidity management and operational efficiency in managing its accounts payable.
Peer comparison
Feb 3, 2024