Bath & Body Works Inc. (BBWI)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,152,000 | 6,184,000 | 5,873,000 | 10,524,000 | 12,919,000 |
| Payables | US$ in thousands | 380,000 | 455,000 | 435,000 | 345,000 | 647,000 |
| Payables turnover | 16.19 | 13.59 | 13.50 | 30.50 | 19.97 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,152,000K ÷ $380,000K
= 16.19
Bath & Body Works Inc.'s payables turnover ratio measures how efficiently the company manages its accounts payable by comparing the cost of goods sold to its average accounts payable balance.
Over the past five years, Bath & Body Works Inc.'s payables turnover ratio has shown some fluctuations. The ratio increased from 2019 to 2020, indicating that the company took slightly longer to pay its suppliers in 2020 compared to the previous year. However, in 2021, there was a significant decrease in the payables turnover ratio, suggesting that the company improved its efficiency in managing its accounts payable by paying suppliers more frequently during that year.
In the latest fiscal year ending February 3, 2024, Bath & Body Works Inc.'s payables turnover ratio further improved to 16.19 times, indicating that the company made payments to suppliers approximately 16 times during the year. This suggests that the company has become more efficient in managing its accounts payable in the most recent year.
Overall, the increasing trend in the payables turnover ratio over the past five years indicates that Bath & Body Works Inc. has been better at managing its accounts payable and paying its suppliers more frequently, which could lead to stronger supplier relationships and potentially better cash flow management.
Peer comparison
Feb 3, 2024