Burlington Stores Inc (BURL)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,882,250 | 8,071,680 | 8,315,480 | 3,567,460 | 4,253,900 |
| Payables | US$ in thousands | 956,350 | 955,793 | 1,080,800 | 862,638 | 759,107 |
| Payables turnover | 9.29 | 8.45 | 7.69 | 4.14 | 5.60 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,882,250K ÷ $956,350K
= 9.29
The payables turnover ratio of Burlington Stores Inc has shown a consistent upward trend over the past five years. The ratio has increased from 5.60 in February 2020 to 9.29 in February 2024, indicating an improvement in the company's ability to manage its accounts payable effectively.
A higher payables turnover ratio suggests that Burlington Stores is paying off its suppliers more quickly, which may indicate strong supplier relationships and potentially favorable credit terms. This could also imply efficient working capital management and cash flow optimization.
The steady increase in the payables turnover ratio reflects positively on Burlington Stores' operational efficiency and liquidity position. However, it is essential for the company to strike a balance between prompt payments to suppliers and preserving sufficient cash for other business needs.
Overall, the improving trend in Burlington Stores Inc's payables turnover ratio demonstrates effective management of its accounts payable and a potential indicator of financial strength and stability.
Peer comparison
Feb 3, 2024