Signet Jewelers Ltd (SIG)
Payables turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,146,400 | 4,481,000 | 4,636,300 | 4,682,700 | 4,895,700 | 8,894,100 | 8,793,400 | 8,797,800 | 7,019,700 | 6,080,800 | 5,907,900 | 4,355,400 | 4,461,700 | 4,655,700 | 4,623,700 | 4,651,100 | 5,977,600 | 3,985,100 | 3,579,400 | 4,524,800 |
| Payables | US$ in thousands | 735,100 | 644,900 | 570,700 | 701,500 | 879,000 | 800,200 | 689,500 | 880,700 | 899,800 | 868,200 | 730,600 | 700,100 | 812,600 | 558,400 | 302,200 | 329,100 | 227,900 | 333,900 | 224,100 | 238,300 |
| Payables turnover | 11.08 | 6.95 | 8.12 | 6.68 | 5.57 | 11.11 | 12.75 | 9.99 | 7.80 | 7.00 | 8.09 | 6.22 | 5.49 | 8.34 | 15.30 | 14.13 | 26.23 | 11.94 | 15.97 | 18.99 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,146,400K ÷ $735,100K
= 11.08
The payables turnover ratio of Signet Jewelers Ltd has exhibited fluctuating trends over the past several quarters. The ratio indicates how efficiently the company is managing its accounts payable by showing the number of times it pays off its suppliers in a given period.
The payables turnover ratio has ranged from a low of 5.49 to a high of 26.23 in the provided data. Generally, a higher payables turnover ratio signifies that the company is paying off its suppliers more frequently, which could indicate good relationships with suppliers or efficient inventory management.
In analyzing the trend, there are some quarters where the payables turnover ratio has shown an increasing trend, such as in August 2020 where it reached 15.30 and February 2020 when it peaked at 26.23. This could indicate a more rapid turnover of payables during those periods.
Conversely, there are quarters where the payables turnover ratio decreased, such as in May 2021 and October 2021. A decreasing payables turnover ratio may indicate a longer payment period to suppliers, which could be a concern if it reflects cash flow issues or strained supplier relationships.
Overall, it is essential to monitor the payables turnover ratio over time to understand how effectively Signet Jewelers Ltd is managing its accounts payable and its relationships with suppliers. fluctuations in the ratio could provide insights into the company's liquidity, operational efficiency, and supplier management practices.