Williams-Sonoma Inc (WSM)
Payables turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,080,810 | 2,181,910 | 2,178,850 | 1,725,570 | 1,673,220 |
| Payables | US$ in thousands | 607,877 | 508,321 | 612,512 | 542,992 | 521,235 |
| Payables turnover | 3.42 | 4.29 | 3.56 | 3.18 | 3.21 |
January 28, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,080,810K ÷ $607,877K
= 3.42
Williams-Sonoma Inc's payables turnover has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company manages its accounts payable. A higher ratio indicates that the company is paying off its suppliers more quickly.
In 2024, the payables turnover ratio decreased to 3.42 from 4.29 in 2023. This could imply that Williams-Sonoma Inc took longer to pay its suppliers in 2024 compared to the previous year, which could potentially strain its relationships with vendors if it becomes a trend.
The company's payables turnover was highest in 2023 at 4.29, indicating that Williams-Sonoma Inc was managing its accounts payable more efficiently that year. However, this value decreased in 2024. Comparing to 2022, the payables turnover ratio was 3.56, which suggests a slight improvement in managing accounts payable in 2024.
Overall, Williams-Sonoma Inc's payables turnover has shown variability in recent years, indicating potential shifts in how the company manages its accounts payable. Further analysis of the company's financial performance and supplier relationships could provide more insights into these fluctuations in the payables turnover ratio.