Name: Payables Turnover

Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.

Interpretation:
• In '2021', MNSO's payables turnover was 2.44, indicating how promptly the company pays its suppliers. Industry average for Department/Specialty Retail Stores in '2021' stood at 4.97.
• In '2022', MNSO's payables turnover was 2.50, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Department/Specialty Retail Stores in '2022' stood at 6.18. Industry average increased by 1.21 compared to previous year.
• In '2023', MNSO's payables turnover was 2.38, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2023' stood at 5.93. Industry average declined by 0.25 from previous year.
• In '2024', MNSO's payables turnover was 2.74, indicating how promptly the company pays its suppliers. The increase since '2023' reflects strengthening financial performance. Industry average for Department/Specialty Retail Stores in '2024' stood at 6.42. Industry average increased by 0.49 compared to previous year.
Overall, MNSO's payables turnover has steadily improved over the past 4 years.

Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable

Good Range: Ranges 5-15 depending on industry.