AutoZone Inc (AZO)
Payables turnover
| 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 | May 4, 2019 | Feb 9, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 5,291,600 | 5,237,790 |
| Payables | US$ in thousands | 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 | 4,693,090 | 4,669,570 |
| Payables turnover | 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 | 1.13 | 1.12 |
February 10, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,391,100K ÷ $7,149,880K
= 1.17
The payables turnover ratio for AutoZone Inc has shown relatively stable performance over the past several quarters, ranging between 1.07 and 1.27. This ratio indicates how efficiently the company manages its accounts payable by measuring the number of times a company pays off its average accounts payable balance within a specific period.
The consistent range of payables turnover ratios suggests that AutoZone Inc is effectively managing its accounts payable, maintaining a balance between timely payments to suppliers and the availability of cash for operating activities. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which might suggest strong cash flow management or favorable credit terms negotiated with suppliers.
Overall, the stable and relatively high payables turnover ratios for AutoZone Inc indicate a healthy payment management system, reflecting positively on the company's financial health and operational efficiency in managing its trade payables.
Peer comparison
Feb 10, 2024