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.
Peer comparison
Jan 31, 2024