Victoria's Secret & Co (VSCO)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,961,000 | 5,866,000 | 5,915,000 |
| Payables | US$ in thousands | 513,000 | 481,000 | 538,000 |
| Payables turnover | 11.62 | 12.20 | 10.99 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,961,000K ÷ $513,000K
= 11.62
The payables turnover ratio for Victoria's Secret & Co has slightly decreased from 12.20 in January 2023 to 11.62 in February 2024, indicating that the company took longer to pay its suppliers in the most recent period. However, it is higher than the ratio of 10.99 in January 2022, suggesting an improvement in the efficiency of managing the company's accounts payable turnover over the past two years. This trend could potentially signal a shift in the company's payment practices or supplier relationships. Further investigation into the reasons behind this fluctuation is recommended to better understand Victoria's Secret & Co's financial management strategy and its impact on working capital management.
Peer comparison
Feb 3, 2024