Costco Wholesale Corp (COST)
Payables turnover
| 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 | Sep 1, 2019 | May 12, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 181,414,000 | 125,034,000 | 121,998,000 | 122,501,000 | 173,306,000 | 223,398,000 | 219,407,000 | 149,769,000 | 142,578,000 | 135,915,000 | 128,905,000 | 180,275,000 | 172,748,000 | 167,129,000 | 161,334,000 | 152,240,000 | 147,162,000 | 140,840,000 | 136,238,000 | 136,843,000 |
| Payables | US$ in thousands | 17,494,000 | 20,357,000 | 17,483,000 | 16,853,000 | 16,407,000 | 18,348,000 | 17,848,000 | 17,651,000 | 17,089,000 | 19,561,000 | 16,278,000 | 15,538,000 | 14,383,000 | 17,014,000 | 14,172,000 | 10,813,000 | 11,072,000 | 14,440,000 | 11,679,000 | 11,331,000 |
| Payables turnover | 10.37 | 6.14 | 6.98 | 7.27 | 10.56 | 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 | 11.67 | 12.08 |
February 18, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $181,414,000K ÷ $17,494,000K
= 10.37
Costco Wholesale Corp has shown fluctuations in its payables turnover ratio over the past several periods. The payables turnover ratio indicates how efficiently the company is managing its trade payables.
From February 2018 to November 2021, the payables turnover ratio ranged between 6.14 and 12.29, with an average of approximately 9.40. The ratio peaked at 14.08 in May 2020, suggesting that Costco was able to repay its trade payables 14.08 times during that period.
In general, a higher payables turnover ratio is preferred as it indicates that the company is paying its suppliers more quickly. Costco's average payables turnover ratio of 9.40 demonstrates that the company is effectively managing its trade payables and may have good relations with its suppliers, who are likely willing to extend credit terms.
However, the fluctuations in the ratio over the period under analysis may indicate changes in Costco's purchasing strategies, negotiation terms with suppliers, or other operational factors affecting the management of trade payables. Further analysis and comparison with industry benchmarks could provide more insights into Costco's payables management efficiency.
Peer comparison
Feb 18, 2024