Designer Brands Inc (DBI)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,100,090 | 2,236,200 | 2,127,950 | 1,923,480 | 2,493,020 |
| Payables | US$ in thousands | 289,368 | 255,364 | 340,877 | 245,071 | 299,072 |
| Payables turnover | 7.26 | 8.76 | 6.24 | 7.85 | 8.34 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,100,090K ÷ $289,368K
= 7.26
The payables turnover ratio for Designer Brands Inc has displayed some fluctuations over the past five years. In the most recent fiscal year ending February 3, 2024, the payables turnover ratio was 7.26, indicating that the company paid its suppliers approximately 7.26 times during the year. This represents a decrease from the previous year's ratio of 8.76.
The trend in payables turnover suggests that the company is taking longer to pay its suppliers compared to the prior year. A lower payables turnover ratio may signal that Designer Brands Inc is carrying its payables for a longer period before settling them, which could potentially indicate issues with managing its cash flow efficiently.
It is important for the company to monitor its payables turnover ratio closely and strive to strike a balance between maximizing payment terms with suppliers and maintaining good relationships. A consistently declining payables turnover ratio may warrant further investigation into the company's liquidity position and working capital management practices.
Peer comparison
Feb 3, 2024