Cabela's Dpo Ratio Summary

Cabela’s accounts payable has seen relatively similar increases and decreases as its accounts payable. They experienced a huge decrease in AP % Change/ Overall % Change in Sales from 2006-2007. This could be in large part to the recession taking place, causing the company to carry less inventory, thus less accounts payables. Regarding their AP turnover ratio, it has fluctuated continuously over the period, ranging from 1-2.5. Cabela’s DPO ratio has increased throughout the 10 year period. From 2005-2014 the DPO ratio has increased 37%, meaning it takes the company longer periods of time to pay its invoices from trade creditors.

Dick’s Sporting Goods

Dick’s accounts payable and COGS have steadily increased over the period indicating that the firm has become bigger with the need to purchase more inventory to sell off. Their AP % change/overall sales % change shows major fluctuations between the years of 2006 and 2009. This again can most likely be attributable to the recession. With the lack of sales during this period there would be less of a need for inventory, which would decrease COGS and accounts payable needed to buy the inventory. After the recession we see a drastic increase in accounts payable, which means the company may have used credit for

This could mean that Big 5 did not buy much of their inventory on credit. As for the Overall Accounts Payable Turnover Ratio, it increased gradually and saw a 32.68% total change over the 10 year period. It started off with an average of 1.42x in 2005 and finished off 2014 with an average of 1.68x. As for its Days Payable Outstanding Ratio it saw a decrease of -30.39%. It had an average of 66 DPO (Days Payable Outstanding) in 2005 and an average of 55 DSO in 2014. This is a good sign for Big 5 because it means that they are taking less time to pay their suppliers and pay off other accounts