Best Buy Co. Inc (BBY)
Number of days of payables
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 7.30 | 4.77 | 6.35 | 7.26 | 6.40 | 5.33 | 7.12 | 7.19 | 5.90 | 4.81 | 5.82 | 6.13 | 5.26 | 3.87 | 5.08 | 7.50 | 6.35 | 4.58 | 6.54 | 6.97 | |
| Number of days of payables | days | 50.00 | 76.58 | 57.50 | 50.24 | 57.05 | 68.42 | 51.26 | 50.76 | 61.89 | 75.82 | 62.73 | 59.50 | 69.43 | 94.31 | 71.84 | 48.66 | 57.46 | 79.64 | 55.78 | 52.33 |
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 some variability over the time periods analyzed. On average, the company takes around 60 days to pay its suppliers. The data suggests that the company's payables turnover cycle can fluctuate, with some periods showing faster payments to suppliers (as low as 48.66 days) and other periods showing longer payment cycles (as high as 94.31 days).
Analyzing this ratio over multiple reporting periods provides insights into the efficiency of Best Buy's working capital management and supplier relationships. A lower number of days of payables indicates a quicker turnover of payables, which could imply stronger bargaining power with suppliers or effective cash flow management. In contrast, a higher number of days of payables may suggest potential liquidity challenges or strained supplier relationships.
Overall, it is important for Best Buy Co. Inc to monitor and manage its number of days of payables effectively to maintain good relationships with suppliers while optimizing its working capital position.
See also:
Best Buy Co. Inc Average Payables Payment Period (Quarterly Data)