Academy Sports Outdoors Inc (ASO)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,489,740 | 5,554,020 | 5,865,380 | 5,268,840 |
| Payables | US$ in thousands | 541,077 | 686,472 | 737,826 | 791,404 |
| Payables turnover | 10.15 | 8.09 | 7.95 | 6.66 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,489,740K ÷ $541,077K
= 10.15
Academy Sports Outdoors Inc's payables turnover has shown a consistent improvement over the past four years. The payables turnover ratio increased from 6.66 in January 2021 to 10.15 in February 2024. This indicates that the company has been managing its accounts payable more efficiently, taking fewer days to pay its suppliers.
A higher payables turnover ratio suggests that Academy Sports Outdoors Inc is paying its suppliers more quickly, which can lead to better relationships with suppliers and possibly favorable credit terms in the future. It can also indicate effective working capital management and potentially improved cash flow.
Overall, the increasing trend in payables turnover ratio for Academy Sports Outdoors Inc reflects positively on the company's ability to efficiently manage its accounts payable and indicates a potentially healthy financial position.
Peer comparison
Feb 3, 2024