Kohls Corp (KSS)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,759,000 | 17,874,000 | 17,753,000 | 16,323,000 | 18,835,000 |
| Payables | US$ in thousands | 1,134,000 | 1,330,000 | 1,683,000 | 1,476,000 | 1,206,000 |
| Payables turnover | 14.78 | 13.44 | 10.55 | 11.06 | 15.62 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $16,759,000K ÷ $1,134,000K
= 14.78
The payables turnover ratio for Kohls Corp has exhibited variation over the past five years. The ratio measures how efficiently the company is managing its accounts payables by determining how many times during a year the company pays off its suppliers.
The payables turnover ratio for Kohls Corp was 14.78 in fiscal year 2024, indicating that the company paid off its accounts payable nearly 15 times during the year. This suggests an improvement in the efficiency of managing payables compared to the previous year.
In the prior fiscal year 2023, the payables turnover ratio was 13.44, a slight decrease from the current year. This implies that in FY 2023, the company paid off its payables approximately 13 times, showing a solid performance in managing its accounts payable obligations.
In FY 2022, the payables turnover ratio was 10.55, which indicates a lower rate of accounts payable turnover compared to the previous year. This might suggest that the company took longer to pay off its suppliers in that period, potentially impacting relationships with suppliers.
In FY 2021, the payables turnover ratio was 11.06, showing a slight improvement from the previous year. This suggests that the company managed its payables more efficiently in FY 2021 compared to FY 2022.
In FY 2020, the payables turnover ratio was 15.62, the highest ratio among the five years analyzed. This indicates that Kohls Corp paid off its accounts payable approximately 16 times during the year, reflecting a strong ability to manage its payable obligations effectively.
Overall, an increasing payables turnover ratio over the years signifies that Kohls Corp has been managing its accounts payables more efficiently, potentially improving cash flow and relationships with suppliers. However, fluctuations in the ratio from year to year should be further explored to understand the underlying reasons for the changes in payables management.
Peer comparison
Feb 3, 2024