Chewy Inc (CHWY)
Payables turnover
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,598,670 | 10,508,010 | 10,482,190 | 10,432,790 | 10,268,500 | 10,054,410 | 9,709,410 | 9,397,310 | 9,184,890 | 8,923,160 | 8,657,210 | 8,344,040 | 7,915,930 | 7,501,870 | 7,112,300 | 6,723,420 | 6,165,420 | 5,682,240 | 5,198,430 | 4,672,570 |
| Payables | US$ in thousands | 1,229,130 | 1,179,810 | 1,143,720 | 1,104,940 | 1,078,430 | 1,119,320 | 1,113,850 | 1,030,880 | 991,951 | 1,049,390 | — | 883,316 | 1,015,680 | — | — | 778,365 | — | — | — | — |
| Payables turnover | 8.62 | 8.91 | 9.16 | 9.44 | 9.52 | 8.98 | 8.72 | 9.12 | 9.26 | 8.50 | — | 9.45 | 7.79 | — | — | 8.64 | — | — | — | — |
October 27, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,598,670K ÷ $1,229,130K
= 8.62
The payables turnover ratio measures how efficiently Chewy Inc is managing its trade payables by calculating how many times the company pays off its suppliers in a given period. A higher payables turnover ratio indicates that Chewy Inc is taking less time to pay its suppliers, which could signify stronger liquidity or better negotiation terms with suppliers.
Analyzing the data provided, we observe fluctuations in Chewy Inc's payables turnover ratio over the past few quarters, ranging from 7.79 to 9.52. On average, the company pays its suppliers around 8 to 9 times a year based on the provided data.
The increasing trend in the payables turnover ratio could suggest that Chewy Inc is efficiently managing its payables by paying off suppliers more frequently. This could be beneficial in terms of maintaining good relationships with suppliers and potentially negotiating better terms.
However, the variability in the ratio over the quarters could also indicate changes in the company's payment policies, business operations, or external factors affecting supplier relationships. It would be essential for Chewy Inc to monitor these fluctuations and ensure they do not indicate underlying financial challenges or inefficiencies in managing payables.
Overall, the payables turnover ratio provides insight into Chewy Inc's ability to manage its payables effectively and maintain healthy relationships with suppliers, highlighting the importance of monitoring this ratio for financial health and operational efficiency.
Peer comparison
Oct 27, 2024