Costco Wholesale Corp (COST)
Number of days of payables
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.63 | 13.40 | 12.29 | 11.63 | 11.39 | |
| Number of days of payables | days | 28.90 | 27.23 | 29.69 | 31.39 | 32.06 |
September 1, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.63
= 28.90
The number of days of payables for Costco Wholesale Corp has shown a decreasing trend over the past five years. As of September 1, 2024, the company takes approximately 28.90 days to pay its creditors, compared to 27.23 days in the prior year and 29.69 days two years ago. This indicates that the company is efficiently managing its payables as it is taking slightly longer to pay its suppliers over the years. Maintaining a consistent or decreasing number of days of payables demonstrates effective cash flow management and good relationships with creditors. It suggests that Costco is able to negotiate favorable payment terms while ensuring vendors are paid in a timely manner.
Peer comparison
Sep 1, 2024