Costco Wholesale Corp (COST)
Payables turnover
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 245,265,000 | 234,345,000 | 219,407,000 | 189,271,000 | 161,357,000 |
| Payables | US$ in thousands | 19,421,000 | 17,483,000 | 17,848,000 | 16,278,000 | 14,172,000 |
| Payables turnover | 12.63 | 13.40 | 12.29 | 11.63 | 11.39 |
September 1, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $245,265,000K ÷ $19,421,000K
= 12.63
Costco Wholesale Corp's payables turnover ratio has shown a fluctuating trend over the past five years. The payables turnover ratio, which measures how efficiently a company manages its accounts payable, was 12.63 in September 2024, a decrease from the previous year's ratio of 13.40.
Despite the slight decrease in 2024, Costco's payables turnover ratio has generally been improving over the last five years. The company was able to pay off its accounts payable 12.63 times during the fiscal year, up from 11.39 times in August 2020. This indicates that Costco has been managing its accounts payable more effectively over time.
A higher payables turnover ratio typically suggests that a company is efficiently managing its suppliers and paying off its debts in a timely manner. However, it is important to note that changes in the payables turnover ratio can also be influenced by factors such as changes in payment terms with suppliers or changes in the company's purchasing and inventory management practices.
Overall, the trend in Costco Wholesale Corp's payables turnover ratio indicates an improvement in the management of its accounts payable over the past five years, with the company being more efficient in settling its payables obligations.
Peer comparison
Sep 1, 2024