Target Corporation (TGT)
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 | 101,068,000 | 101,647,000 | 101,291,000 | 101,047,000 | 101,806,000 | 101,995,000 | 103,351,000 | 85,343,000 | 66,735,000 | 117,594,000 | 97,532,000 | 97,383,000 | 97,145,000 | 88,234,000 | 87,985,000 | 87,560,000 | 87,084,000 | 74,900,000 | 87,373,000 | 99,444,000 |
| Payables | US$ in thousands | 13,053,000 | 14,419,000 | 12,595,000 | 11,561,000 | 12,098,000 | 14,291,000 | 12,278,000 | 11,935,000 | 13,487,000 | 15,438,000 | 14,891,000 | 14,053,000 | 15,478,000 | 16,250,000 | 12,632,000 | 11,637,000 | 12,859,000 | 14,203,000 | 10,726,000 | 9,625,000 |
| Payables turnover | 7.74 | 7.05 | 8.04 | 8.74 | 8.42 | 7.14 | 8.42 | 7.15 | 4.95 | 7.62 | 6.55 | 6.93 | 6.28 | 5.43 | 6.97 | 7.52 | 6.77 | 5.27 | 8.15 | 10.33 |
February 1, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $101,068,000K ÷ $13,053,000K
= 7.74
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its accounts payable within a certain period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
Based on the data provided for Target Corporation, we can observe fluctuations in the payables turnover ratio over the period from May 2, 2020, to February 1, 2025. The payables turnover ratio ranged from a low of 4.95 on January 28, 2023, to a high of 10.33 on May 2, 2020.
The fluctuation in the payables turnover ratio signifies changes in how effectively Target Corporation manages its accounts payable. A general downward trend in the payables turnover ratio over time may suggest that Target is taking longer to pay off its suppliers, which could signal potential cash flow issues or changes in the company's payment terms with suppliers.
Additionally, it is essential to consider industry benchmarks and peer comparisons when evaluating Target Corporation's payables turnover ratio to gain a better understanding of the company's performance relative to its competitors. Further analysis of the underlying factors influencing the fluctuations in the ratio, such as changes in purchasing and payment policies, supplier relationships, and overall financial health, is necessary to provide a more in-depth assessment of Target Corporation's payables management efficiency.
Peer comparison
Feb 1, 2025