Foot Locker Inc (FL)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,034,000 | 8,136,000 | 8,098,000 | 7,225,000 | 7,339,000 |
| Payables | US$ in thousands | 366,000 | 492,000 | 596,000 | 402,000 | 333,000 |
| Payables turnover | 21.95 | 16.54 | 13.59 | 17.97 | 22.04 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,034,000K ÷ $366,000K
= 21.95
The payables turnover ratio measures how efficiently Foot Locker Inc is managing its payments to suppliers. It indicates how many times the company pays off its accounts payable during a specific period.
Analyzing the trend of Foot Locker's payables turnover ratio from 2020 to 2024, we observe fluctuations. The ratio was highest in 2020 at 22.04, indicating that Foot Locker efficiently paid its suppliers over 22 times during that year. However, in 2022, the ratio dropped to 13.59, suggesting a decrease in the rate at which the company settled its accounts payable.
In 2021, the payables turnover ratio increased to 17.97, indicating a relative improvement in payment efficiency compared to the previous year. In 2023, the ratio further increased to 16.54, showing a continued trend of more efficient payment practices.
Notably, in 2024, the payables turnover ratio reached its highest point in the observed period at 21.95, signifying an enhanced rate of settling accounts payable. This increase suggests that Foot Locker improved its payment management efficiency significantly during this year.
Overall, while there have been fluctuations in Foot Locker's payables turnover ratio over the years, the recent substantial increase in 2024 indicates an improvement in the company's ability to manage and pay off its suppliers promptly.
Peer comparison
Feb 3, 2024