Abbott Laboratories (ABT)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 31,388,000 | 31,708,000 | 31,742,000 | 32,218,000 | 32,920,000 | 32,724,000 | 32,056,000 | 31,532,000 | 30,940,000 | 30,164,000 | 29,242,000 | 27,108,000 | 25,804,000 | 24,527,000 | 24,057,000 | 24,231,000 | 23,965,000 | 23,673,000 | 23,418,000 | 23,453,000 |
| Payables | US$ in thousands | 4,295,000 | 3,961,000 | 4,211,000 | 4,167,000 | 4,607,000 | 4,133,000 | 4,493,000 | 4,757,000 | 4,408,000 | 4,017,000 | 4,017,000 | 4,066,000 | 3,946,000 | 3,189,000 | 3,335,000 | 3,181,000 | 3,252,000 | 3,029,000 | 3,222,000 | 3,045,000 |
| Payables turnover | 7.31 | 8.01 | 7.54 | 7.73 | 7.15 | 7.92 | 7.13 | 6.63 | 7.02 | 7.51 | 7.28 | 6.67 | 6.54 | 7.69 | 7.21 | 7.62 | 7.37 | 7.82 | 7.27 | 7.70 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $31,388,000K ÷ $4,295,000K
= 7.31
The payables turnover ratio for Abbott Laboratories has shown some fluctuation over the past eight quarters, ranging from a low of 4.02 in Q2 2022 to a high of 4.67 in Q3 2022. The average payables turnover ratio for this period is approximately 4.34.
A high payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying its suppliers quickly. This can be positive as it suggests strong supplier relationships and the ability to take advantage of early payment discounts.
On the other hand, a low payables turnover ratio could indicate that the company is taking longer to pay its suppliers, potentially straining supplier relationships or missing out on early payment discounts. It could also suggest inefficiencies in the company's payables management processes.
Overall, Abbott Laboratories' payables turnover ratio has been relatively stable around the industry average, indicating that the company is effectively managing its accounts payable. However, it is important for Abbott Laboratories to continue monitoring and improving its payables turnover ratio to ensure optimal working capital management and strong supplier relationships.
Peer comparison
Dec 31, 2023