Science Applications International Corporation Common Stock (SAIC)
Payables turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,572,000 | 6,816,000 | 6,535,000 | 6,264,000 | 5,673,000 |
| Payables | US$ in thousands | 567,000 | 624,000 | 612,000 | 517,000 | 527,000 |
| Payables turnover | 11.59 | 10.92 | 10.68 | 12.12 | 10.76 |
February 2, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,572,000K ÷ $567,000K
= 11.59
The payables turnover ratio for Science Applications International Corporation Common Stock has shown a consistent trend over the past five years, indicating the company's ability to efficiently manage its accounts payable. The ratio has ranged from 10.68 to 12.12, with an average of approximately 11.21.
A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently within the period being analyzed. This could indicate effective working capital management and potentially favorable supplier relationships.
However, it is important to note that a very high payables turnover ratio may also signal that the company is pressuring suppliers for extremely quick payment terms, which could strain supplier relationships in the long run.
Overall, based on the historical data provided, Science Applications International Corporation Common Stock has demonstrated a strong ability to manage its payables efficiently, which can positively impact its liquidity and working capital management.
Peer comparison
Feb 2, 2024