Chewy Inc (CHWY)
Payables turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,432,800 | 9,397,300 | 8,344,050 | 6,723,430 | 4,672,570 |
| Payables | US$ in thousands | 1,104,940 | 1,030,880 | 883,316 | 778,365 | 683,049 |
| Payables turnover | 9.44 | 9.12 | 9.45 | 8.64 | 6.84 |
January 28, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,432,800K ÷ $1,104,940K
= 9.44
The payables turnover ratio for Chewy Inc has shown a fluctuating trend over the past five fiscal years. The company's ability to manage its accounts payable effectively has demonstrated an upward trend in recent years, with a notable increase from 6.84 in Feb 2, 2020, to 9.44 in Jan 28, 2024. This indicates that Chewy Inc is taking less time to pay off its suppliers, reflecting efficient management of its payables.
Consistently maintaining a payables turnover ratio above 1 suggests that Chewy Inc is efficiently using its payables to support its operations and generate revenue. The higher the payables turnover ratio, the more frequently the company is paying its suppliers, which may indicate strong vendor relationships and potential negotiation power for favorable credit terms.
Overall, the upward trend in Chewy Inc's payables turnover ratio reflects effective management of its accounts payable and signals operational efficiency in managing its working capital.
Peer comparison
Jan 28, 2024