Signet Jewelers Ltd (SIG)
Payables turnover
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,119,100 | 8,072,200 | 8,109,100 | 8,040,600 | 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 |
| Payables | US$ in thousands | 767,000 | 642,500 | 547,600 | 599,300 | 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 |
| Payables turnover | 10.59 | 12.56 | 14.81 | 13.42 | 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 |
February 1, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,119,100K ÷ $767,000K
= 10.59
The payables turnover ratio for Signet Jewelers Ltd has fluctuated over the given time period. It measures the efficiency with which the company pays its suppliers. A higher ratio generally indicates that the company is paying its suppliers more quickly.
From May 2, 2020, to August 3, 2024, the payables turnover ratio ranged from 5.49 to 14.81. The highest ratio of 15.30 was recorded on August 1, 2020, indicating efficient payment to suppliers at that time. The lowest ratio of 5.49 was observed on January 30, 2021, suggesting a slower pace of paying suppliers.
Overall, the payables turnover ratio exhibited some volatility but seemed to have improved towards the latter part of the period, with ratios trending higher from January 29, 2022, to August 3, 2024. This could imply better cash management or negotiation leverage with suppliers during this time.
It is important for Signet Jewelers Ltd to analyze the reasons behind the fluctuations in the payables turnover ratio to ensure the company maintains a healthy relationship with its suppliers while optimizing its working capital management.