Tractor Supply Company (TSCO)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,327,530 | 9,603,500 | 9,546,990 | 9,394,210 | 9,232,510 | 8,788,470 | 8,616,100 | 8,413,020 | 8,253,960 | 15,680,070 | 15,406,070 | 15,111,510 | 14,600,890 | 6,426,050 | 6,057,330 | 5,570,860 | 5,480,160 | 5,447,120 | 5,385,710 | 5,296,510 |
| Payables | US$ in thousands | 1,179,800 | 1,412,190 | 1,272,230 | 1,526,540 | 1,398,290 | 1,219,590 | 1,280,520 | 1,341,640 | 1,155,630 | 1,197,810 | 1,221,910 | 1,181,920 | 976,096 | 1,056,910 | 1,003,700 | 887,938 | 643,036 | 679,791 | 681,529 | 785,068 |
| Payables turnover | 7.91 | 6.80 | 7.50 | 6.15 | 6.60 | 7.21 | 6.73 | 6.27 | 7.14 | 13.09 | 12.61 | 12.79 | 14.96 | 6.08 | 6.04 | 6.27 | 8.52 | 8.01 | 7.90 | 6.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,327,530K ÷ $1,179,800K
= 7.91
Tractor Supply Company's payables turnover ratio has fluctuated over the past few quarters. The ratio measures how efficiently the company is managing its accounts payable. A higher turnover ratio indicates that the company is paying off its suppliers more frequently.
In the most recent quarter, as of December 31, 2023, the payables turnover ratio was 7.91, which is an improvement from the previous quarter at 6.80. This suggests that Tractor Supply Company was able to pay off its suppliers more frequently during this period.
Looking at the trend over the past few quarters, it can be observed that the payables turnover ratio has shown variability, ranging from a low of 6.04 to a high of 14.96. Specifically, there was a significant spike in the payables turnover ratio in the third quarter of 2021, indicating a much higher frequency of paying suppliers.
Overall, it is essential for Tractor Supply Company to effectively manage its payables turnover ratio to ensure good relationships with suppliers while optimizing its cash flow and working capital management.
Peer comparison
Dec 31, 2023