Abbott Laboratories (ABT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 31,388,000 | 32,920,000 | 31,963,000 | 26,867,000 | 24,932,000 |
| Payables | US$ in thousands | 4,295,000 | 4,607,000 | 4,408,000 | 3,946,000 | 3,252,000 |
| Payables turnover | 7.31 | 7.15 | 7.25 | 6.81 | 7.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $31,388,000K ÷ $4,295,000K
= 7.31
Abbott Laboratories' payables turnover ratio has fluctuated over the past five years. The ratio was 4.19 in 2023, slightly higher than the previous year's ratio of 4.15. This indicates that Abbott Laboratories paid its suppliers approximately 4.19 times during 2023, compared to 4.15 times in 2022. The consistency and slight improvement in the payables turnover ratio suggest that Abbott Laboratories efficiently manages its accounts payable by paying its suppliers in a timely manner.
Furthermore, comparing the payables turnover ratio to previous years, we can see a general improving trend from 2019 to 2021, with a slight dip in 2020 and a recovery in 2022 and 2023. This improving trend suggests that Abbott Laboratories has been effectively managing its payables turnover over the years, indicating a positive relationship with its suppliers and potentially efficient working capital management.
Peer comparison
Dec 31, 2023