Walgreens Boots Alliance Inc (WBA)
Payables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 166,265,000 | 149,818,000 | 134,560,000 | 130,222,000 | 141,859,000 |
| Payables | US$ in thousands | 14,082,000 | 12,635,000 | 11,255,000 | 11,136,000 | 10,145,000 |
| Payables turnover | 11.81 | 11.86 | 11.96 | 11.69 | 13.98 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $166,265,000K ÷ $14,082,000K
= 11.81
The payable turnover ratio of Walgreens Boots Alliance Inc has been relatively stable over the past five years, ranging from 11.69 to 13.98. This ratio measures how many times the company pays off its suppliers within a given period. A higher ratio indicates the company is paying its suppliers more frequently.
The consistency in the payable turnover ratio suggests that Walgreens Boots Alliance has been managing its payables effectively, maintaining a steady payment cycle with its suppliers. A high payable turnover ratio typically signifies efficient cash flow management and strong supplier relationships.
Overall, the stability and relatively high values of the payable turnover ratio for Walgreens Boots Alliance Inc indicate the company's ability to effectively manage its accounts payable and maintain favorable relationships with its suppliers.
Peer comparison
Aug 31, 2024