AutoZone Inc (AZO)

Payables turnover

		Aug 31, 2024	May 4, 2024	Feb 10, 2024	Nov 18, 2023	Aug 26, 2023	May 6, 2023	Feb 11, 2023	Nov 19, 2022	Aug 27, 2022	May 7, 2022	Feb 12, 2022	Nov 20, 2021	Aug 28, 2021	May 8, 2021	Feb 13, 2021	Nov 21, 2020	Aug 29, 2020	May 9, 2020	Nov 23, 2019	Aug 31, 2019
Cost of revenue (ttm)	US$ in thousands	8,673,210	8,416,640	8,391,100	8,372,610	8,386,790	8,288,340	8,202,730	8,026,270	7,779,570	7,532,710	7,409,980	7,176,900	6,911,800	6,699,150	6,251,720	6,192,250	6,571,650	5,729,650	5,566,460	5,498,750
Payables	US$ in thousands	7,355,700	7,369,670	7,149,880	7,182,950	7,201,280	7,215,570	7,321,550	7,345,980	7,301,350	6,793,200	6,378,610	6,171,340	6,013,920	5,778,220	5,351,100	5,282,310	5,156,320	4,806,330	4,922,150	4,864,910
Payables turnover		1.18	1.14	1.17	1.17	1.16	1.15	1.12	1.09	1.07	1.11	1.16	1.16	1.15	1.16	1.17	1.17	1.27	1.19	1.13	1.13

August 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,673,210K ÷ $7,355,700K
= 1.18

The payables turnover ratio for AutoZone Inc has shown slight fluctuations over the past several quarters, ranging between 1.07 and 1.27. This ratio indicates the number of times a company pays off its accounts payable obligations within a certain period.

Overall, AutoZone Inc's payables turnover has remained relatively stable, with an average value around 1.15. This suggests that the company is efficiently managing its accounts payable, paying off its suppliers in a timely manner. However, it is important to note that a high payables turnover ratio may also indicate aggressive payment practices that could strain vendor relationships.

Analyzing the trend over multiple quarters can help identify any significant changes in the company's payables management strategy. Investors and stakeholders can use this information to assess the company's liquidity, financial health, and relationships with suppliers.