United Natural Foods Inc (UNFI)
Payables turnover
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 26,191,000 | 24,801,000 | 23,055,000 | 22,855,000 | 19,575,100 |
| Payables | US$ in thousands | 1,781,000 | 1,742,000 | 1,644,000 | 1,634,000 | 1,532,310 |
| Payables turnover | 14.71 | 14.24 | 14.02 | 13.99 | 12.77 |
July 29, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $26,191,000K ÷ $1,781,000K
= 14.71
The payables turnover of United Natural Foods Inc. has shown a consistent increasing trend over the past five years, with values of 12.60 in 2019, 13.86 in 2020, 14.00 in 2021, 14.21 in 2022, and 14.68 in 2023. This indicates that the company has been effectively managing its accounts payable and paying off its suppliers more frequently each year.
A higher payables turnover ratio suggests that the company is efficiently managing its trade credit and effectively utilizing supplier financing. It indicates that UNFI is able to pay off its suppliers more quickly, which may not only improve relationships with suppliers but also reduce the risk of default.
Overall, the increasing trend in payables turnover for United Natural Foods Inc. reflects positively on its liquidity management and operational efficiency. This may signal a positive standing in terms of managing trade credit and supplier relationships.
Peer comparison
Jul 29, 2023