Five Below Inc (FIVE)

Payables turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	3,192,100	2,847,580	2,573,900	1,885,680	1,693,720
Payables	US$ in thousands	256,275	221,120	196,461	138,622	130,242
Payables turnover		12.46	12.88	13.10	13.60	13.00

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,192,100K ÷ $256,275K
= 12.46

The payables turnover ratio for Five Below Inc has shown a consistent pattern of decrease over the past five years. The ratio has decreased from 13.00 in fiscal year 2020 to 12.46 in fiscal year 2024. This indicates that the company is taking slightly longer to pay off its suppliers and vendors in recent years.

Although the payables turnover ratio has been decreasing, it still remains at a relatively high level, ranging from 12.46 to 13.60 over the past five years. This suggests that Five Below Inc is efficiently managing its accounts payables by paying off its suppliers in a timely manner.

Overall, while there has been a slight downward trend in the payables turnover ratio for Five Below Inc, the company's ability to efficiently manage its payables and maintain a relatively high turnover ratio indicates effective working capital management.