Dollar Tree Inc (DLTR)

Payables turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	21,294,200	19,409,800	18,595,300	17,721,900	16,570,100
Payables	US$ in thousands	2,063,800	1,899,800	1,884,200	1,480,500	1,336,500
Payables turnover		10.32	10.22	9.87	11.97	12.40

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $21,294,200K ÷ $2,063,800K
= 10.32

The payables turnover ratio for Dollar Tree Inc has been relatively consistent over the past five fiscal years, ranging from 9.87 to 12.40. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its suppliers within a given period.

A higher payables turnover ratio suggests that the company is able to pay off its suppliers more frequently, which may indicate strong relationships with suppliers or efficient working capital management. On the other hand, a lower ratio could suggest that the company is taking longer to pay off its suppliers, which could potentially strain relationships or indicate cash flow issues.

Based on the trend observed, Dollar Tree Inc's payables turnover ratio has generally been stable, with a slight decrease in the last fiscal year. Further analysis would be required to understand the specific factors driving these changes and the implications for the company's financial health and overall operations.