Dollar Tree Inc (DLTR)

Number of days of payables

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Payables turnover		10.32	10.22	9.87	11.97	12.40
Number of days of payables	days	35.38	35.73	36.98	30.49	29.44

February 3, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.32
= 35.38

Analyzing Dollar Tree Inc's number of days of payables over the past five years, we observe a relatively stable trend with minor fluctuations. The number of days of payables ranged from 29.44 days in fiscal year 2020 to 36.98 days in fiscal year 2022, showcasing a moderate increase over the period. Notably, in the most recent fiscal year 2024, the number of days of payables decreased slightly to 35.38 days compared to the previous fiscal year. This indicates that Dollar Tree Inc takes approximately 35 days to pay off its trade payables on average.

A consistent number of days of payables suggests that the company's payment terms with suppliers remain relatively stable. However, a downward trend in this ratio could indicate improved efficiency in managing accounts payable, potentially leading to better working capital management. Conversely, an increasing trend in the number of days of payables may suggest delays in payment to suppliers, which could impact the company's supplier relationships and liquidity position. Overall, monitoring changes in the number of days of payables is essential for assessing Dollar Tree Inc's liquidity, operational efficiency, and vendor management practices.