Tractor Supply Company (TSCO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,327,520 | 9,232,510 | 8,253,950 | 6,858,800 | 5,480,160 |
| Payables | US$ in thousands | 1,179,800 | 1,398,290 | 1,155,630 | 976,096 | 643,036 |
| Payables turnover | 7.91 | 6.60 | 7.14 | 7.03 | 8.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,327,520K ÷ $1,179,800K
= 7.91
Tractor Supply Company's payables turnover ratio has shown fluctuations over the past five years. The payables turnover ratio indicates how efficiently a company is managing its payables by measuring how many times a company pays off its accounts payable during a period.
In 2023, the payables turnover ratio increased to 7.91 from 6.60 in 2022, suggesting that the company improved its efficiency in paying off its accounts payable. This increase may indicate better management of vendor payments and potentially stronger supplier relationships.
Comparing 2023 to prior years, the payables turnover ratio is higher than in 2022, but slightly lower than in 2019. This demonstrates that Tractor Supply Company has been relatively consistent in paying off its payables over the years.
Overall, a payables turnover ratio of 7.91 in 2023 signifies that Tractor Supply Company is efficiently managing its accounts payable by settling them approximately 7.91 times during the year, which is a positive indicator of the company's liquidity and financial health.
Peer comparison
Dec 31, 2023