Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Amazon.com Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The analysis of operating activity ratios from March 2022 through June 2026 reveals a strategic shift toward enhanced inventory efficiency and a significant extension of supplier payment terms, resulting in an altered cash conversion cycle.
- Inventory Management Efficiency
- A consistent upward trend in inventory turnover is observed, rising from 7.90 in March 2022 to 10.00 by June 2026. This improvement is mirrored in the average inventory processing period, which decreased from a peak of 50 days in June 2022 to 36 days by mid-2026. These patterns indicate a heightened capacity to move stock more rapidly, reducing the amount of capital tied up in unsold goods.
- Accounts Payable Dynamics
- Payables turnover shows a steady decline, moving from 4.03 in March 2022 to 2.59 in June 2026. Correspondingly, the average payables payment period has expanded substantially, increasing from 91 days in early 2022 to 141 days by June 2026. This trajectory suggests a deliberate strategy to leverage supplier credit, effectively using accounts payable as a source of interest-free financing to support operations.
- Working Capital Utilization
- Working capital turnover exhibits extreme volatility throughout the period. While the ratio fluctuated between 39.93 and 77.32 during 2023 and 2024, it experienced a massive spike to 413.97 in September 2025 before dropping sharply to 19.34 in March 2026. This high degree of variance indicates significant periodic adjustments in the relationship between net current assets and total revenue, potentially reflecting aggressive balance sheet management or substantial shifts in short-term asset and liability structures.
- Overall Operating Cycle Trends
- The combined effect of decreasing inventory processing days and increasing payables payment days indicates a widening gap that favors cash retention. The company is accelerating the movement of inventory while simultaneously slowing the outflow of cash to vendors, which optimizes short-term liquidity and enhances the internal funding of growth initiatives.
AI Ask an analyst for more
Turnover Ratios
Average No. Days
Inventory Turnover
Amazon.com Inc., inventory turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of sales | 95,778) | 87,463) | 109,959) | 88,670) | 80,809) | 76,976) | 98,893) | 80,977) | 73,785) | 72,633) | 92,553) | 75,022) | 69,373) | 67,791) | 85,640) | 70,268) | 66,424) | 66,499) | ||||||
| Inventories | 38,184) | 36,534) | 38,325) | 41,494) | 40,825) | 35,864) | 34,214) | 36,103) | 34,109) | 31,147) | 33,318) | 35,406) | 36,587) | 34,170) | 34,405) | 36,647) | 38,153) | 34,987) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 10.00 | 10.04 | 9.30 | 8.32 | 8.27 | 9.22 | 9.54 | 8.86 | 9.21 | 9.94 | 9.15 | 8.41 | 8.01 | 8.49 | 8.40 | 7.80 | 7.30 | 7.90 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 4.43 | 4.22 | 4.53 | 4.30 | 4.38 | 4.51 | 4.85 | 4.49 | 4.43 | 4.08 | 4.20 | 4.07 | 3.96 | 4.01 | 4.55 | 4.76 | 5.06 | 4.87 | ||||||
| Lowe’s Cos. Inc. | 3.40 | 3.03 | 3.21 | 3.18 | 3.33 | 3.13 | 3.41 | 3.43 | 3.57 | 3.28 | 3.50 | 3.23 | 3.29 | 3.14 | 3.65 | 3.82 | 3.66 | 3.44 | ||||||
| TJX Cos. Inc. | 5.46 | 5.56 | 6.09 | 4.69 | 5.99 | 6.16 | 6.36 | 4.48 | 5.56 | 5.64 | 6.21 | 4.26 | 5.04 | 5.10 | 5.82 | 4.90 | 6.04 | 5.35 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Inventory turnover
= (Cost of salesQ2 2026
+ Cost of salesQ1 2026
+ Cost of salesQ4 2025
+ Cost of salesQ3 2025)
÷ Inventories
= (95,778 + 87,463 + 109,959 + 88,670)
÷ 38,184 = 10.00
2 Click competitor name to see calculations.
The analysis of short-term operating activity indicates a general improvement in inventory management efficiency over the period from March 2022 to June 2026. There is a clear correlation between the scaling of the cost of sales and the optimization of inventory levels, resulting in an overall upward trend in the inventory turnover ratio.
- Cost of Sales Trends
- A consistent upward growth pattern is observed in the cost of sales, characterized by significant quarterly seasonality. The highest expenditures consistently occur in the fourth quarter of each year, reaching a peak of 109,959 million US$ in December 2025. This recurring pattern reflects a strong alignment with year-end consumer demand cycles and an overall expansion of the operational scale.
- Inventory Level Management
- Inventory levels have remained relatively stable relative to the growth in sales volume. Values fluctuated between a low of 31,147 million US$ in March 2024 and a peak of 41,494 million US$ in June 2025. The capacity to maintain inventory within a controlled range while the cost of sales climbed suggests an improvement in lean inventory practices and supply chain optimization.
- Inventory Turnover Efficiency
- The inventory turnover ratio demonstrates a long-term positive trajectory, increasing from a 2022 range of 7.30 to 8.40 to a peak of 10.04 in March 2026. Notable efficiency gains were observed starting in 2024, where the ratio consistently remained above 8.86. This trend indicates an acceleration in the rate at which inventory is sold and replaced, suggesting enhanced operational efficiency and a reduction in capital tied up in unsold goods.
AI Ask an analyst for more
Payables Turnover
Amazon.com Inc., payables turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of sales | 95,778) | 87,463) | 109,959) | 88,670) | 80,809) | 76,976) | 98,893) | 80,977) | 73,785) | 72,633) | 92,553) | 75,022) | 69,373) | 67,791) | 85,640) | 70,268) | 66,424) | 66,499) | ||||||
| Accounts payable | 147,440) | 124,749) | 121,909) | 106,032) | 98,285) | 89,241) | 94,363) | 84,570) | 81,817) | 73,068) | 84,981) | 72,004) | 69,481) | 66,907) | 79,600) | 67,760) | 71,219) | 68,547) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Payables turnover1 | 2.59 | 2.94 | 2.92 | 3.26 | 3.44 | 3.70 | 3.46 | 3.78 | 3.84 | 4.24 | 3.59 | 4.14 | 4.22 | 4.34 | 3.63 | 4.22 | 3.91 | 4.03 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 8.41 | 7.39 | 8.90 | 7.61 | 7.65 | 8.04 | 10.13 | 8.92 | 8.51 | 8.20 | 9.14 | 8.43 | 7.19 | 6.59 | 7.45 | 7.32 | 7.47 | 6.44 | ||||||
| Lowe’s Cos. Inc. | 5.85 | 4.94 | 6.01 | 5.27 | 5.43 | 4.86 | 6.61 | 6.07 | 6.02 | 5.39 | 6.16 | 5.22 | 5.03 | 4.59 | 5.65 | 5.62 | 5.28 | 4.52 | ||||||
| TJX Cos. Inc. | 8.56 | 8.98 | 9.19 | 6.99 | 8.61 | 9.41 | 9.83 | 6.85 | 8.26 | 8.43 | 9.53 | 7.11 | 8.74 | 8.16 | 7.77 | 5.97 | 6.96 | 6.17 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Payables turnover
= (Cost of salesQ2 2026
+ Cost of salesQ1 2026
+ Cost of salesQ4 2025
+ Cost of salesQ3 2025)
÷ Accounts payable
= (95,778 + 87,463 + 109,959 + 88,670)
÷ 147,440 = 2.59
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a significant shift in the management of trade payables over the period from March 2022 through June 2026, characterized by a gradual deceleration in the payment cycle.
- Cost of Sales and Accounts Payable Trends
- Both cost of sales and accounts payable exhibit a consistent long-term upward trajectory. Cost of sales demonstrates pronounced seasonality, with peak values occurring every December, reflecting cyclical demand. Simultaneously, accounts payable have expanded substantially, increasing from 68,547 million USD in March 2022 to 147,440 million USD by June 2026, indicating a significant increase in the volume of trade credit utilized to finance operations.
- Payables Turnover Ratio Analysis
- A clear downward trend is observed in the payables turnover ratio. During 2022 and 2023, the ratio remained relatively stable, fluctuating between a high of 4.34 and a low of 3.59. However, starting in 2024, the ratio entered a period of sustained decline, falling from 4.24 in March 2024 to 2.59 by June 2026. This decline indicates that the company is taking longer to settle its obligations to suppliers.
- Operational Implications
- The reduction in the turnover ratio suggests a strategic extension of the cash conversion cycle. By slowing the rate at which payables are liquidated, the company increases its available working capital and improves its liquidity position. This pattern often reflects increased leverage over the supply chain or a deliberate shift in treasury management to maximize the use of interest-free supplier financing.
AI Ask an analyst for more
Working Capital Turnover
Amazon.com Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 249,264) | 255,155) | 229,083) | 196,866) | 191,420) | 184,645) | 190,867) | 175,792) | 173,307) | 163,989) | 172,351) | 142,995) | 140,482) | 136,221) | 146,791) | 131,463) | 133,667) | 133,876) | ||||||
| Less: Current liabilities | 241,274) | 216,756) | 218,005) | 195,196) | 186,921) | 176,171) | 179,431) | 161,477) | 158,172) | 152,965) | 164,917) | 145,214) | 148,238) | 147,570) | 155,393) | 140,363) | 140,291) | 139,508) | ||||||
| Working capital | 7,990) | 38,399) | 11,078) | 1,670) | 4,499) | 8,474) | 11,436) | 14,315) | 15,135) | 11,024) | 7,434) | (2,219) | (7,756) | (11,349) | (8,602) | (8,900) | (6,624) | (5,632) | ||||||
| Net sales | 200,606) | 181,519) | 213,386) | 180,169) | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | 97.08 | 19.34 | 64.72 | 413.97 | 148.93 | 76.74 | 55.79 | 43.32 | 39.93 | 53.59 | 77.32 | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 36.32 | 55.43 | 52.78 | 40.08 | 36.65 | 18.37 | 19.67 | 21.62 | 20.37 | 22.32 | 16.81 | 16.73 | 30.40 | 43.84 | 417.56 | 41.45 | 90.49 | 48.51 | ||||||
| Lowe’s Cos. Inc. | 82.22 | 290.03 | 52.26 | 33.09 | 20.54 | 26.32 | 24.66 | 25.98 | 20.16 | 20.34 | 50.26 | 23.32 | 41.46 | 25.26 | 245.54 | 23.72 | 27.67 | 24.04 | ||||||
| TJX Cos. Inc. | 29.40 | 32.24 | 28.42 | 24.16 | 24.51 | 23.78 | 24.50 | 24.16 | 25.35 | 24.41 | 23.22 | 28.07 | 29.41 | 20.26 | 17.40 | 14.05 | 12.91 | 7.40 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Working capital turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Working capital
= (200,606 + 181,519 + 213,386 + 180,169)
÷ 7,990 = 97.08
2 Click competitor name to see calculations.
The financial data indicates a significant structural shift in the short-term liquidity position and operational efficiency over the analyzed period. A primary observation is the transition of working capital from a sustained negative position to a positive one, coinciding with a steady upward trajectory in net sales.
- Working Capital Dynamics
- A prolonged period of negative working capital is observed from March 2022 through September 2023, reaching a trough of negative 11.3 billion USD in March 2023. A pivot occurred in December 2023, where working capital turned positive at 7.4 billion USD. Subsequent volatility is evident, characterized by a peak of 38.4 billion USD in March 2026, followed by a sharp contraction to 7.9 billion USD by June 2026.
- Net Sales Performance
- Net sales exhibit consistent growth and clear seasonality. Revenue climbed from 116.4 billion USD in March 2022 to 200.6 billion USD by June 2026. Distinct quarterly spikes are visible every December, with the highest recorded revenue reaching 213.4 billion USD in December 2025, confirming a recurring year-end surge in activity.
- Working Capital Turnover Analysis
- The turnover ratio became calculable upon the shift to positive working capital in December 2023. The ratio exhibits extreme volatility, largely driven by the fluctuations in the working capital denominator. A notable anomaly occurs in September 2025, where the ratio spiked to 413.97, resulting from a significant decrease in working capital to 1.67 billion USD against high sales of 180.2 billion USD. This suggests a period of exceptionally high efficiency in utilizing short-term assets or a temporary lean in liquidity relative to volume.
- Operational Correlation
- The relationship between sales growth and working capital turnover suggests an evolving operational strategy. While net sales grew linearly with seasonal peaks, the turnover ratio varied inconsistently, indicating that the growth in revenue was not strictly tied to a proportional increase in the working capital base. The sharp decline in the turnover ratio to 19.34 in March 2026 reflects the disproportionate surge in working capital to 38.4 billion USD during that period.
AI Ask an analyst for more
Average Inventory Processing Period
Amazon.com Inc., average inventory processing period calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Inventory turnover | 10.00 | 10.04 | 9.30 | 8.32 | 8.27 | 9.22 | 9.54 | 8.86 | 9.21 | 9.94 | 9.15 | 8.41 | 8.01 | 8.49 | 8.40 | 7.80 | 7.30 | 7.90 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 36 | 36 | 39 | 44 | 44 | 40 | 38 | 41 | 40 | 37 | 40 | 43 | 46 | 43 | 43 | 47 | 50 | 46 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 82 | 87 | 81 | 85 | 83 | 81 | 75 | 81 | 82 | 89 | 87 | 90 | 92 | 91 | 80 | 77 | 72 | 75 | ||||||
| Lowe’s Cos. Inc. | 107 | 121 | 114 | 115 | 110 | 117 | 107 | 106 | 102 | 111 | 104 | 113 | 111 | 116 | 100 | 96 | 100 | 106 | ||||||
| TJX Cos. Inc. | 67 | 66 | 60 | 78 | 61 | 59 | 57 | 81 | 66 | 65 | 59 | 86 | 72 | 72 | 63 | 74 | 60 | 68 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 10.00 = 36
2 Click competitor name to see calculations.
The analysis of operational activity ratios indicates a general improvement in inventory management efficiency from early 2022 through mid-2026. An overall trend of increasing inventory turnover is coupled with a corresponding decrease in the average inventory processing period, suggesting a more streamlined flow of goods through the supply chain.
- Inventory Turnover Trends
- Inventory turnover demonstrates a long-term upward trajectory, rising from 7.90 in March 2022 to a peak of 10.04 in March 2026. While periodic fluctuations occurred—most notably a decline during the middle of 2025—the ratio consistently remained above the 2022 baseline, indicating a faster rate of inventory replacement over the analyzed period.
- Average Inventory Processing Period
- The average inventory processing period shows a general downward trend, moving from 46 days in March 2022 to 36 days by June 2026. A peak of 50 days was recorded in June 2022, followed by gradual reductions. Periodic increases are observable in the second and third quarters of 2023 and 2025, suggesting recurring seasonal adjustments in inventory holding. The lowest durations of 36 days observed in early 2026 represent the highest level of operational efficiency within the timeframe.
- Correlation and Operational Impact
- A strong inverse correlation exists between the turnover ratio and the processing period. The compression of the inventory cycle from a high of 50 days to a low of 36 days reflects an enhanced ability to convert inventory into sales. This trend indicates a reduction in the amount of capital tied up in short-term assets and a lower risk of inventory obsolescence.
AI Ask an analyst for more
Average Payables Payment Period
Amazon.com Inc., average payables payment period calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Payables turnover | 2.59 | 2.94 | 2.92 | 3.26 | 3.44 | 3.70 | 3.46 | 3.78 | 3.84 | 4.24 | 3.59 | 4.14 | 4.22 | 4.34 | 3.63 | 4.22 | 3.91 | 4.03 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average payables payment period1 | 141 | 124 | 125 | 112 | 106 | 99 | 106 | 96 | 95 | 86 | 102 | 88 | 87 | 84 | 101 | 86 | 93 | 91 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 43 | 49 | 41 | 48 | 48 | 45 | 36 | 41 | 43 | 45 | 40 | 43 | 51 | 55 | 49 | 50 | 49 | 57 | ||||||
| Lowe’s Cos. Inc. | 62 | 74 | 61 | 69 | 67 | 75 | 55 | 60 | 61 | 68 | 59 | 70 | 72 | 79 | 65 | 65 | 69 | 81 | ||||||
| TJX Cos. Inc. | 43 | 41 | 40 | 52 | 42 | 39 | 37 | 53 | 44 | 43 | 38 | 51 | 42 | 45 | 47 | 61 | 52 | 59 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.59 = 141
2 Click competitor name to see calculations.
An analysis of the operating activity ratios reveals a significant shift in the management of accounts payable over the observed period. There is a strong inverse correlation between the payables turnover ratio and the average payables payment period, characterized by a gradual decline in turnover efficiency and a corresponding extension of the time taken to settle obligations with suppliers.
- Payables Turnover Ratio
- The payables turnover ratio exhibited relative stability between March 2022 and December 2023, fluctuating within a range of 3.59 to 4.34. However, starting in March 2024, a consistent downward trajectory is observed. The ratio declined from 4.24 in March 2024 to 2.59 by June 2026. This sustained decrease indicates a reduction in the frequency with which the company clears its accounts payable throughout the year.
- Average Payables Payment Period
- The average payables payment period mirrors the turnover trend, showing a marked increase in the duration of payment cycles. From March 2022 to December 2023, the period fluctuated between 84 and 102 days. Beginning in 2024, there is a clear upward trend, with the period extending from 86 days in March 2024 to a peak of 141 days by June 2026. The most aggressive expansion in payment terms occurred between September 2025 and June 2026, where the period rose from 112 to 141 days.
The extension of the payables payment period suggests a strategic shift toward optimizing working capital by delaying cash outflows. By increasing the time allowed for payment to suppliers, the company effectively utilizes its accounts payable as a source of interest-free financing, thereby enhancing short-term liquidity. This trend suggests an increase in bargaining power relative to suppliers or a deliberate change in credit term negotiations to support operational cash flow.
AI Ask an analyst for more