Guess? Inc. (GES)

Payables turnover

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Cost of revenue US$ in thousands 2,514,920 2,441,440 1,422,130 1,179,430 1,662,400
Payables US$ in thousands 272,830 289,442 325,797 300,427 232,761
Payables turnover 9.22 8.43 4.37 3.93 7.14

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,514,920K ÷ $272,830K
= 9.22

The payables turnover ratio for Guess? Inc. has shown a consistent upward trend over the past five years. As of February 3, 2024, the company's payables turnover ratio stands at 9.22, indicating an increase in efficiency in managing its accounts payables compared to previous years.

A higher payables turnover ratio suggests that Guess? Inc. is paying off its suppliers more quickly, which could be a positive sign of strong liquidity and effective cash flow management. This could also indicate improved vendor relationships and negotiating power.

The significant improvement in the payables turnover ratio from 3.93 in January 30, 2021, to 9.22 in February 3, 2024, reflects a substantial enhancement in the company's ability to efficiently utilize its accounts payables to support its operational activities.

Overall, the increasing trend in Guess? Inc.'s payables turnover ratio demonstrates a positive financial performance, indicating effective management of accounts payables and potential liquidity advantages for the company.