Costco Wholesale Corp (COST)

Number of days of payables

		Sep 1, 2024	May 12, 2024	Feb 18, 2024	Nov 26, 2023	Sep 3, 2023	May 7, 2023	Feb 12, 2023	Nov 20, 2022	Aug 28, 2022	May 8, 2022	Feb 13, 2022	Nov 21, 2021	Aug 29, 2021	May 9, 2021	Feb 14, 2021	Nov 22, 2020	Aug 30, 2020	May 10, 2020	Feb 16, 2020	Nov 24, 2019
Payables turnover		12.63	12.99	13.76	11.68	13.43	13.54	13.82	12.18	12.29	8.49	8.34	6.95	7.92	11.60	12.01	9.82	11.38	14.08	13.29	9.75
Number of days of payables	days	28.90	28.09	26.52	31.25	27.18	26.96	26.42	29.98	29.69	43.02	43.75	52.53	46.09	31.46	30.39	37.16	32.06	25.92	27.46	37.42

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 fluctuated over the past several periods. Based on the data provided, the average number of days of payables is approximately 32 days. This indicates that, on average, Costco takes about a month to pay its suppliers and vendors for goods and services received.

The trend in the number of days of payables shows some variation, with the metric ranging from a low of 25.92 days to a high of 52.53 days over the periods analyzed. A lower number of days of payables suggests that Costco is managing its accounts payable efficiently and may be paying its suppliers more promptly. Conversely, a higher number of days of payables could indicate that Costco is taking longer to settle its payables, potentially impacting its working capital management.

Analyzing the number of days of payables over time allows for a better understanding of Costco's payment patterns and cash flow management. This metric is crucial for assessing how effectively the company is utilizing its resources and managing its relationships with suppliers. Further investigation into the factors influencing fluctuations in the number of days of payables can provide insights into Costco's financial health and operational efficiency.