Five Below Inc (FIVE)

Number of days of payables

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Payables turnover 12.46 12.88 13.10 13.60 13.00
Number of days of payables days 29.30 28.34 27.86 26.83 28.07

February 3, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.46
= 29.30

The number of days of payables for Five Below Inc has shown a gradual increase over the past five years. In the most recent fiscal year ending on Feb 3, 2024, the company took approximately 29.30 days to pay its suppliers, which was slightly higher compared to the previous year at 28.34 days. This indicates that Five Below Inc is taking slightly longer to settle its accounts payable.

Looking further back, the trend continues with the number of days of payables increasing from 27.86 days in Jan 29, 2022, to 26.83 days in Jan 30, 2021, and then up to 28.07 days in Feb 1, 2020. This suggests a consistent elongation in the payment period over the years.

A longer number of days of payables generally means that the company's suppliers are financing a portion of Five Below Inc's operations, potentially benefiting the company by providing additional liquidity. However, this also signifies that the company may be facing pressure to manage its cash flows effectively to ensure timely payments to suppliers in the future. Overall, the increasing trend in the number of days of payables for Five Below Inc highlights the importance of monitoring and managing the company's payables effectively to maintain healthy supplier relationships and liquidity.