Signet Jewelers Ltd (SIG)
Payables turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,119,100 | 8,148,200 | 8,753,500 | 8,540,200 | 6,482,900 |
| Payables | US$ in thousands | 767,000 | 735,100 | 879,000 | 899,800 | 812,600 |
| Payables turnover | 10.59 | 11.08 | 9.96 | 9.49 | 7.98 |
February 1, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,119,100K ÷ $767,000K
= 10.59
Signet Jewelers Ltd's payables turnover has shown a consistent upward trend over the past five years. The payables turnover ratio, which measures how efficiently a company is managing its accounts payable, increased from 7.98 in January 30, 2021, to 10.59 in February 1, 2025. This indicates that Signet Jewelers Ltd has been able to pay off its suppliers at a faster rate in recent years.
A higher payables turnover ratio is generally favorable as it suggests that the company is efficiently managing its short-term obligations and may have strong relationships with its suppliers. Signet Jewelers Ltd's improving payables turnover ratio could indicate effective cash flow management and potentially better negotiating power with its suppliers. This trend may be viewed positively by investors and creditors as a sign of the company's financial health and operational efficiency.