Walmart Inc (WMT)

Payables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	490,142,000	463,721,000	429,000,000	420,315,000	394,605,000
Payables	US$ in thousands	56,812,000	53,742,000	55,261,000	49,141,000	46,973,000
Payables turnover		8.63	8.63	7.76	8.55	8.40

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $490,142,000K ÷ $56,812,000K
= 8.63

Payables turnover is a financial ratio that provides insight into how efficiently a company is managing its accounts payable. In the case of Walmart Inc, the payables turnover ratio has remained relatively stable over the past five years, with values ranging between 7.76 and 8.63.

The consistent payables turnover indicates that Walmart is efficiently managing its accounts payable by paying off its suppliers in a timely manner. A higher turnover ratio suggests that Walmart is able to quickly convert its accounts payable into cash, which could be beneficial for maintaining good relationships with suppliers and managing working capital effectively.

Overall, a stable and relatively high payables turnover ratio like that of Walmart Inc indicates efficient management of accounts payable and a strong financial position.