Dick’s Sporting Goods Inc (DKS)
Payables turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,909,150 | 11,681,060 | 11,545,000 | 11,285,360 | 11,099,810 | 10,579,590 | 10,273,970 | 10,233,020 | 10,340,940 | 10,299,760 | 10,138,000 | 9,848,730 | 8,846,850 | 8,550,780 | 8,301,340 | 8,083,530 | 8,408,730 | 8,221,870 | 8,109,700 | 8,020,450 |
| Payables | US$ in thousands | 1,288,730 | 1,630,400 | 1,320,660 | 1,220,000 | 1,206,070 | 1,473,420 | 1,489,320 | 1,491,930 | 1,281,320 | 1,399,720 | 1,213,450 | 1,239,500 | 1,258,090 | 1,394,900 | 1,094,260 | 844,991 | 1,001,590 | 1,097,560 | 906,721 | 932,055 |
| Payables turnover | 9.24 | 7.16 | 8.74 | 9.25 | 9.20 | 7.18 | 6.90 | 6.86 | 8.07 | 7.36 | 8.35 | 7.95 | 7.03 | 6.13 | 7.59 | 9.57 | 8.40 | 7.49 | 8.94 | 8.61 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,909,150K ÷ $1,288,730K
= 9.24
The payables turnover ratio for Dick’s Sporting Goods Inc has fluctuated over the past few years, indicating varying trends in the company's management of its accounts payable. The ratio measures how efficiently the company pays its suppliers by comparing the amount of purchases made on credit to the average accounts payable balance.
From May 2019 to February 2024, the payables turnover ratio ranged from a low of 6.13 to a peak of 9.57, with an average of approximately 8.05. This suggests that, on average, Dick’s Sporting Goods Inc turned over its accounts payable approximately 8 times a year during this period.
A higher payables turnover ratio typically indicates that the company is efficiently managing its accounts payable by paying suppliers more quickly. Conversely, a lower ratio may imply that the company is taking longer to pay its suppliers, potentially straining relationships or missing out on early payment discounts.
Overall, the trend in Dick’s Sporting Goods Inc's payables turnover ratio indicates some variability in its payment practices, which could have implications for its cash flow management and relationships with suppliers. Further analysis of the company's financial statements and industry benchmarks may provide additional insights into its working capital management.
Peer comparison
Feb 3, 2024