Science Applications International Corporation Common Stock (SAIC)

Payables turnover

Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021
Cost of revenue US$ in thousands 6,587,000 6,572,000 6,816,000 6,535,000 6,264,000
Payables US$ in thousands 631,000 567,000 624,000 612,000 517,000
Payables turnover 10.44 11.59 10.92 10.68 12.12

January 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,587,000K ÷ $631,000K
= 10.44

The payables turnover ratio for Science Applications International Corporation Common Stock has shown a fluctuating trend over the past five years, ranging from 10.44 to 12.12. This ratio indicates the company's efficiency in managing its accounts payable by measuring how many times it pays off its suppliers within a given period. A higher ratio is generally favorable as it suggests that the company is paying its suppliers more quickly, which can enhance its relationship with suppliers and potentially improve access to credit terms. However, it's also important to consider industry norms and the company's specific circumstances when interpreting this ratio. Overall, the consistent values around 10-12 demonstrate that Science Applications International Corporation has been effectively managing its payables turnover over the years.