Target Corporation (TGT)
Number of days of payables
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 8.42 | 7.81 | 6.28 | 6.77 | 7.41 | |
| Number of days of payables | days | 43.37 | 46.73 | 58.15 | 53.90 | 49.28 |
February 3, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.42
= 43.37
Target Corporation's number of days of payables has shown a mixed trend over the past five years. In the most recent fiscal year ending on February 3, 2024, the company reported an improvement in its payables management, with the number of days of payables decreasing to 43.37 days from 46.73 days in the previous year. This suggests that Target is taking longer to pay its suppliers, potentially improving its working capital management.
Comparing this to two years ago, where the number of days of payables was 58.15 days, the current figure reflects a significant reduction in the time it takes for Target to settle its payables. This indicates a possible focus on efficiency and liquidity management within the company.
However, it is essential to note that the number of days of payables can vary for legitimate reasons, such as changes in payment terms negotiated with suppliers or shifts in the company's inventory management practices. As such, a deeper analysis of the underlying factors behind these fluctuations would be necessary to provide a more comprehensive understanding of Target Corporation's payables management strategy.
Peer comparison
Feb 3, 2024