AutoZone Inc (AZO)
Payables turnover
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,386,790 | 7,779,580 | 6,911,800 | 5,861,210 | 5,498,740 |
| Payables | US$ in thousands | 7,201,280 | 7,301,350 | 6,013,920 | 5,156,320 | 4,864,910 |
| Payables turnover | 1.16 | 1.07 | 1.15 | 1.14 | 1.13 |
August 26, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,386,790K ÷ $7,201,280K
= 1.16
The payables turnover ratio measures the efficiency with which a company manages its accounts payable. It is calculated by dividing the cost of goods sold by the average accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Autozone Inc.'s payables turnover has fluctuated over the past five years, ranging from 1.07 to 1.16. The slight increase in the payables turnover ratio from 1.07 in August 2022 to 1.16 in August 2023 suggests that the company has improved its ability to pay off its suppliers more frequently. This may indicate a more efficient management of accounts payable and potentially better relationships with suppliers. However, it's important to assess this trend in conjunction with other financial ratios and operational performance to gain a comprehensive understanding of Autozone Inc.'s overall financial health and efficiency in managing its working capital.
Peer comparison
Aug 26, 2023