Dick’s Sporting Goods Inc (DKS)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,098,200 | 11,270,700 | 10,262,600 | 8,846,840 | 8,408,730 |
| Payables | US$ in thousands | 1,288,730 | 1,206,070 | 1,281,320 | 1,258,090 | 1,001,590 |
| Payables turnover | 9.39 | 9.34 | 8.01 | 7.03 | 8.40 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,098,200K ÷ $1,288,730K
= 9.39
The payables turnover ratio for Dick’s Sporting Goods Inc has generally shown an increasing trend over the past five years, indicating efficiency in managing its trade payables. This ratio measures how quickly the company is paying off its suppliers.
In the latest fiscal year, ending on Feb 3, 2024, the payables turnover ratio stood at 9.39, slightly higher compared to the previous year at 9.34. This suggests that the company is paying its suppliers approximately 9.39 times a year, or approximately once every 39 days, up from approximately once every 39.5 days in the previous year.
Compared to two years ago in Jan 29, 2022, when the payables turnover ratio was 8.01, the company has shown a notable improvement in efficiently managing its payables. The increase in this ratio indicates that Dick’s Sporting Goods Inc is paying its suppliers more frequently compared to previous years.
Overall, a higher payables turnover ratio signifies better liquidity management and potentially good relationships with suppliers, as the company is able to pay off its obligations faster. It is important to continue monitoring this ratio in conjunction with other financial metrics to assess the overall financial health and operational efficiency of Dick’s Sporting Goods Inc.
Peer comparison
Feb 3, 2024