Urban Outfitters Inc (URBN)

Payables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	3,425,960	3,361,610	3,054,810	2,572,350	2,729,350
Payables	US$ in thousands	253,342	257,620	304,246	237,386	167,871
Payables turnover		13.52	13.05	10.04	10.84	16.26

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,425,960K ÷ $253,342K
= 13.52

The payables turnover of Urban Outfitters Inc has demonstrated fluctuations over the past five years. For the fiscal year ending January 31, 2024, the payables turnover ratio was 13.52, indicating that the company paid its accounts payable approximately 13.52 times during the year. This represents an increase from the previous year's ratio of 13.05.

Comparing further back, the payables turnover ratio was 10.04 for the fiscal year ending January 31, 2022, and 10.84 for the fiscal year ending January 31, 2021. It then significantly increased to 16.26 for the fiscal year ending January 31, 2020.

The fluctuations in the payables turnover ratio suggest variations in how quickly Urban Outfitters Inc is paying its suppliers. A higher ratio typically indicates that the company is paying its suppliers more frequently, which could be seen as advantageous in terms of maintaining good relationships and potentially negotiating better credit terms. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could impact supplier relationships and potentially indicate cash flow challenges.

It is important for analysts and investors to consider the trend in payables turnover ratios over time to assess the effectiveness of Urban Outfitters Inc's payables management and its impact on the company's overall financial performance.