Dollar Tree Inc (DLTR)

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	21,294,200	20,761,000	20,487,600	19,941,100	19,409,800	19,018,100	18,803,700	18,641,800	18,595,300	18,266,900	17,865,800	17,745,000	17,721,300	19,189,700	20,324,600	21,434,900	22,366,200	16,301,800	16,065,000	15,736,400
Payables	US$ in thousands	2,063,800	1,857,000	1,776,400	1,597,600	1,899,800	1,864,200	2,011,300	1,794,100	1,884,200	1,984,800	1,559,600	1,520,700	1,480,500	1,587,200	1,481,000	1,336,900	1,336,500	1,473,100	1,455,400	1,186,500
Payables turnover		10.32	11.18	11.53	12.48	10.22	10.20	9.35	10.39	9.87	9.20	11.46	11.67	11.97	12.09	13.72	16.03	16.73	11.07	11.04	13.26

February 3, 2024 calculation

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

The payables turnover ratio for Dollar Tree Inc has shown fluctuations over the past few periods, ranging from a low of 9.20 to a high of 16.73. This ratio measures how efficiently the company is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance over a certain period.

In general, a higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may signify strong liquidity and good relationships with suppliers. A lower ratio, on the other hand, suggests that the company is taking longer to pay its bills, which could potentially strain supplier relationships or reflect cash flow management issues.

Dollar Tree Inc's payables turnover ratio has been fluctuating within a relatively narrow range, indicating consistency in how the company manages its accounts payable. However, it is important to further investigate the reasons behind the fluctuations to assess the effectiveness of the company's payables management strategy and its overall financial health.