American Eagle Outfitters Inc (AEO)

Payables turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019	Feb 2, 2019
Cost of revenue (ttm)	US$ in thousands	5,203,560	4,995,710	4,971,600	5,043,480	5,016,650	5,051,760	4,979,810	4,801,800	5,153,160	4,550,151	4,336,189	4,170,561	4,273,721	4,307,920	4,355,521	4,284,033	3,913,393	3,845,157	3,777,390	3,457,464
Payables	US$ in thousands	268,308	300,031	238,660	212,318	234,340	188,448	198,645	236,376	231,782	314,561	221,471	255,912	304,552	295,296	177,124	285,746	366,676	316,995	231,760	240,671
Payables turnover		19.39	16.65	20.83	23.75	21.41	26.81	25.07	20.31	22.23	14.47	19.58	16.30	14.03	14.59	24.59	14.99	10.67	12.13	16.30	14.37

February 3, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,203,560K ÷ $268,308K
= 19.39

The payables turnover ratio measures how efficiently a company is managing its accounts payable by looking at how many times a company pays off its suppliers during a period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which can signify strong liquidity and good creditor relationships.

Examining American Eagle Outfitters Inc's payables turnover ratio over the past few quarters, we can observe fluctuations in the ratio. The ratio ranged from 10.67 to 26.81 over the provided periods. In general, the company seems to have a moderate to high payables turnover ratio, suggesting that it is effectively managing its accounts payable and paying off its suppliers at a relatively efficient rate.

Additionally, analyzing the trend of the payables turnover ratio, we notice some variability in the ratio. The ratio increased from 14.37 in February 2019 to a peak of 26.81 in October 2022, before declining to 19.39 in the most recent data from February 2024. This fluctuation may indicate changes in the company's payment policies, supplier relationships, or purchasing strategies.

Overall, American Eagle Outfitters Inc's payables turnover ratio indicates that the company has been reasonably efficient in managing its accounts payable, although the fluctuating nature of the ratio warrants continued monitoring to assess any underlying reasons for the changes.