Best Buy Co. Inc (BBY)
Payables turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 32,143,000 | 33,849,000 | 36,386,000 | 40,121,000 | 36,689,000 |
| Payables | US$ in thousands | 4,980,000 | 4,637,000 | 5,687,000 | 6,803,000 | 6,979,000 |
| Payables turnover | 6.45 | 7.30 | 6.40 | 5.90 | 5.26 |
February 1, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $32,143,000K ÷ $4,980,000K
= 6.45
The payables turnover ratio for Best Buy Co. Inc has shown a generally increasing trend over the past five years, indicating efficiency in managing its accounts payable.
The ratio has increased from 5.26 in January 30, 2021, to 6.45 in February 1, 2025.
This improvement suggests that Best Buy is making payments to its suppliers more frequently within a shorter period, which may reflect stronger vendor relationships or negotiated payment terms.
A higher payables turnover ratio indicates that the company is converting its accounts payable into cash more frequently, which can reflect improved liquidity and better cash flow management.
Overall, the increasing trend in the payables turnover ratio for Best Buy Co. Inc indicates positive developments in its accounts payable management over the analyzed period.