Costco Wholesale Corp (COST)
Number of days of payables
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 13.40 | 12.29 | 11.63 | 11.39 | 11.67 | |
| Number of days of payables | days | 27.23 | 29.69 | 31.39 | 32.06 | 31.29 |
September 3, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 13.40
= 27.23
The number of days of payables for Costco Wholesale Corp has shown a declining trend over the past five years according to the provided data. This trend indicates that Costco has been taking fewer days to pay its suppliers and vendors.
In financial analysis, a decreasing number of days of payables can signify improved efficiency in managing payables and cash flow. It suggests that Costco has been able to negotiate better payment terms with its suppliers, potentially improving its working capital management.
The decreasing trend in the number of days of payables may translate to a potential competitive advantage for Costco, as it can free up cash for other uses within the business. However, it is essential to consider the overall context of Costco's financial performance and industry dynamics to draw a comprehensive conclusion on the implications of this trend.
Peer comparison
Sep 3, 2023