Best Buy Co. Inc (BBY)
Number of days of payables
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.30 | 6.40 | 5.90 | 5.26 | 6.35 | |
| Number of days of payables | days | 50.00 | 57.05 | 61.89 | 69.43 | 57.46 |
February 3, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.30
= 50.00
The number of days of payables for Best Buy Co. Inc has shown a decreasing trend over the past five years. As of February 3, 2024, the company took an average of 50.00 days to pay its suppliers, which is an improvement compared to 57.05 days in the previous year and a significant reduction from 69.43 days in January 30, 2021. A lower number of days of payables indicates that the company is managing its accounts payables more efficiently, potentially benefiting from discounts or improved credit terms. This trend suggests that Best Buy Co. Inc has been able to optimize its working capital management by extending its payment periods strategically while maintaining good relationships with its suppliers.