BJs Wholesale Club Holdings Inc (BJ)

Payables turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	16,326,100	15,883,700	13,588,600	12,451,100	10,763,900
Payables	US$ in thousands	1,183,280	1,195,700	1,112,780	988,074	786,412
Payables turnover		13.80	13.28	12.21	12.60	13.69

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $16,326,100K ÷ $1,183,280K
= 13.80

The payables turnover ratio for BJs Wholesale Club Holdings Inc has exhibited a fluctuating pattern over the past five years. The ratio, which measures how many times a company pays off its suppliers in a given period, increased from 12.60 in January 2021 to 13.80 in February 2024, indicating an improvement in the speed at which BJs Wholesale Club pays its suppliers.

The trend suggests that the company has been more efficient in managing its accounts payable over the last five years. A higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly, which can positively impact its working capital management and relationships with suppliers.

Overall, the increasing payables turnover ratio of BJs Wholesale Club Holdings Inc reflects a strong financial position and efficient management of its accounts payable. It is crucial to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial performance and liquidity management.