Academy Sports Outdoors Inc (ASO)
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 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,489,730 | 5,437,770 | 5,491,120 | 5,549,190 | 5,554,020 | 5,617,290 | 5,679,570 | 5,786,360 | 5,865,380 | 5,711,310 | 5,602,150 | |||
| Payables | US$ in thousands | 541,077 | 820,428 | 669,832 | 712,643 | 686,472 | 840,585 | 778,016 | 825,456 | 737,826 | 919,196 | 816,427 | 864,966 | 791,404 | 868,879 |
| Payables turnover | 10.15 | 6.63 | 8.20 | 7.79 | 8.09 | 6.68 | 7.30 | 7.01 | 7.95 | 6.21 | 6.86 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,489,730K ÷ $541,077K
= 10.15
The payables turnover ratio for Academy Sports Outdoors Inc has fluctuated over the past several quarters, ranging from a low of 6.21 to a high of 10.15. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance in a given period.
On average, the company took approximately 7 to 8 times to pay off its accounts payable during the periods analyzed. A higher payables turnover ratio is generally seen as a positive indicator, as it suggests that the company is managing its payables effectively and paying off its suppliers in a timely manner.
It is essential to monitor changes in the payables turnover ratio over time to identify any trends or anomalies. A decreasing trend in the ratio could indicate that the company is taking longer to pay off its suppliers, which may lead to strained supplier relationships or potential liquidity issues. Conversely, a significant increase in the ratio could signal a more efficient management of payables, but it could also indicate a potential strain on cash flow if the company is paying off its payables too quickly.
Overall, while the payables turnover ratio for Academy Sports Outdoors Inc has varied, staying within a reasonable range, it is important for the company to continue monitoring and managing its payables effectively to ensure healthy supplier relationships and sustainable cash flow management.
Peer comparison
Feb 3, 2024