Signet Jewelers Ltd (SIG)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,148,200 | 8,753,500 | 8,540,200 | 6,482,900 | 7,313,700 |
| Payables | US$ in thousands | 735,100 | 879,000 | 899,800 | 812,600 | 227,900 |
| Payables turnover | 11.08 | 9.96 | 9.49 | 7.98 | 32.09 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,148,200K ÷ $735,100K
= 11.08
Signet Jewelers Ltd's payables turnover has shown a consistent improvement over the past five years. The ratio has increased from 32.09 in 2020 to 11.08 in the most recent fiscal year, indicating that the company is taking longer to pay its suppliers. This could be a result of renegotiated payment terms or improved supplier relationships.
The rising trend in payables turnover suggests that Signet Jewelers is effectively managing its accounts payable and optimizing its working capital. A higher payables turnover ratio can also indicate efficient inventory management and cash flow control. However, it's essential to analyze this trend in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance and liquidity management.