RH (RH)
Payables turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,765,820 | 2,797,980 | 1,640,110 | 1,778,490 | 3,004,580 |
| Payables | US$ in thousands | — | 192,345 | — | — | 166,082 |
| Payables turnover | — | 14.55 | — | — | 18.09 |
January 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,765,820K ÷ $—K
= —
The payables turnover ratio reflects how efficiently a company is managing its accounts payable. It is calculated by dividing the net credit purchases by the average accounts payable during the period. Based on the provided data for RH:
1. January 28, 2023: Payables turnover ratio was 18.09.
2. January 31, 2023: Data not available.
3. January 31, 2024: Data not available.
4. February 3, 2024: Payables turnover ratio was 14.55.
5. January 31, 2025: Data not available.
The payables turnover ratio of 18.09 on January 28, 2023 indicated that RH was able to turn over its accounts payable approximately 18 times during that period. This suggests that RH was efficiently managing its payables and paying off suppliers in a timely manner. However, the absence of data for the other periods makes it difficult to assess the trend of payables turnover over time. The decrease in the payables turnover ratio to 14.55 on February 3, 2024 could indicate a slower rate of paying off suppliers compared to the previous period. A consistent and high payables turnover ratio is generally preferred as it indicates effective management of trade credit obligations.