Target Corporation (TGT)
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 | 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 | 111,264,000 | 73,113,000 | 72,452,000 | 71,997,000 |
| Payables | US$ in thousands | 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 | 9,920,000 | 11,258,000 | 9,152,000 | 8,360,000 |
| Payables turnover | 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 | 11.22 | 6.49 | 7.92 | 8.61 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $101,806,000K ÷ $12,098,000K
= 8.42
The payables turnover ratio for Target Corporation has shown some fluctuation over the past several quarters. The ratio indicates how many times a company pays off its accounts payable during a specific period.
In the most recent period, ending on February 3, 2024, the payables turnover ratio was 8.42, which means that Target Corporation paid off its accounts payable approximately 8.42 times during that period. This suggests that the company efficiently manages its accounts payable by settling them relatively quickly.
Looking at the trend over the past several quarters, we can observe fluctuations in the payables turnover ratio, indicating variability in Target's payment practices. For example, there was a peak in payables turnover in May 2020 at 10.33, indicating a higher rate of payables settlement at that time.
Overall, a high payables turnover ratio indicates that Target Corporation is managing its accounts payable effectively and paying off its suppliers promptly. However, it is essential to consider other factors and ratios in conjunction with the payables turnover ratio to gain a comprehensive understanding of Target's financial health and operational efficiency.
Peer comparison
Feb 3, 2024