Foot Locker Inc (FL)
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 | 8,013,000 | 5,707,000 | 5,762,000 | 5,816,000 | 5,924,000 | 5,897,000 | 5,863,000 | 5,960,000 | 5,872,000 | 5,912,000 | 5,873,000 | 5,829,000 | 3,975,000 | 3,957,000 | 2,034,000 | 78,000 | 64,000 | 31,000 | 32,000 | 21,000 |
| Payables | US$ in thousands | 366,000 | 593,000 | 514,000 | 474,000 | 492,000 | 522,000 | 596,000 | 565,000 | 596,000 | 578,000 | 539,000 | 658,000 | 402,000 | 514,000 | 630,000 | 468,000 | 333,000 | 396,000 | 420,000 | 451,000 |
| Payables turnover | 21.89 | 9.62 | 11.21 | 12.27 | 12.04 | 11.30 | 9.84 | 10.55 | 9.85 | 10.23 | 10.90 | 8.86 | 9.89 | 7.70 | 3.23 | 0.17 | 0.19 | 0.08 | 0.08 | 0.05 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,013,000K ÷ $366,000K
= 21.89
The payables turnover ratio for Foot Locker Inc has shown significant fluctuations over the past 20 reported periods. The ratio indicates how efficiently the company is managing its trade payables by measuring the number of times a company pays off its average accounts payable balance during a specific period.
In the most recent period, the payables turnover ratio was 21.89, which implies that the company paid off its average accounts payable balance approximately 21.89 times during the period. This suggests that Foot Locker Inc is efficiently managing its trade payables by settling them quickly.
However, looking at the historical trend, the payables turnover ratio has fluctuated, with some periods showing notably lower ratios. For instance, in August 1, 2020, the ratio was 3.23, indicating a decrease in the efficiency of payables management compared to the most recent period.
In earlier periods, such as May 2, 2020, the ratio was significantly lower at 0.17, reflecting a potential issue with managing payables efficiently during that time. The company has shown improvement since then, gradually increasing the ratio over subsequent periods.
Overall, while Foot Locker Inc has demonstrated fluctuations in its payables turnover ratio over time, the recent high ratio suggests an efficient management of trade payables. It is important for the company to continue monitoring and improving this ratio to ensure effective management of its payables and optimize its working capital management.
Peer comparison
Feb 3, 2024