Victoria's Secret & Co (VSCO)
Payables turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,971,000 | 4,147,000 | 4,084,000 | 4,100,000 | 4,094,000 | 5,930,000 | 5,988,000 | 5,976,000 | |||
| Payables | US$ in thousands | 513,000 | 449,000 | 529,000 | 388,000 | 481,000 | 397,000 | 490,000 | 443,000 | 538,000 | 560,000 | 371,000 |
| Payables turnover | 11.64 | 9.24 | 7.72 | 10.57 | 8.51 | 14.94 | 12.22 | 13.49 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,971,000K ÷ $513,000K
= 11.64
Payables turnover is a financial ratio that measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable for a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently within a given timeframe.
Analyzing Victoria's Secret & Co payables turnover ratio over the past eleven quarters, we observe fluctuations in the ratio. The payables turnover ratio for the most recent quarter, February 3, 2024, stands at 11.64, representing an increase from the previous quarter's ratio of 9.24 on October 28, 2023. This indicates that Victoria's Secret & Co has been able to manage its accounts payable more efficiently in the current quarter compared to the past.
Looking back further, we can see that the company's payables turnover ratio has seen variations over time, ranging from a low of 7.72 on July 29, 2023, to a high of 14.94 on October 29, 2022. The fluctuations in the ratio suggest changes in the company's payment behavior towards its suppliers.
Overall, a higher payables turnover ratio for Victoria's Secret & Co indicates that the company has been able to leverage its accounts payable effectively to support its operations and manage cash flow efficiently. It is important to continue monitoring this ratio to assess the company's performance in managing its payables effectively.
Peer comparison
Feb 3, 2024