Box Inc (BOX)

Payables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	789,462	776,493	761,669	682,628	695,410
Payables	US$ in thousands	—	—	—	4,546	16,752
Payables turnover		—	—	—	150.16	41.51

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $789,462K ÷ $—K
= —

To analyze Box Inc's payables turnover, we will focus on the relationship between cost of goods sold (COGS) and accounts payable. The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times during a period the company pays off its average accounts payable balance.

Calculating the payables turnover for Box Inc in the latest year, we can use the formula:

Payables Turnover = COGS / Average Accounts Payable

Given the data:
COGS for 2021 = 150.16
Payables Turnover for 2021 = 41.51

We can calculate the average accounts payable for 2021 using the payables turnover ratio:

Average Accounts Payable = COGS / Payables Turnover
Average Accounts Payable = 150.16 / 41.51 ≈ 3.62

This means, on average, Box Inc took approximately 3.62 times to pay off its accounts payable during the fiscal year ending January 31, 2021.

It is important to note that payables turnover varies across industries and companies, so it is crucial to compare this ratio with industry benchmarks to assess Box Inc's performance in managing its accounts payable effectively.

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