Amphastar P (AMPH)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	293,274	250,127	238,029	206,506	190,434
Payables	US$ in thousands	25,438	20,501	22,214	24,357	25,061
Payables turnover		11.53	12.20	10.72	8.48	7.60

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $293,274K ÷ $25,438K
= 11.53

Based on the data provided for Amphastar Pharmaceuticals Inc, the payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio, which measures how efficiently a company is able to manage its trade payables, was 11.53 in 2023, decreasing from 12.20 in 2022. This suggests that the company took longer to pay off its suppliers in 2023 compared to the previous year.

Furthermore, the payables turnover ratio was 10.72 in 2021, indicating an improvement from 8.48 in 2020. This increase suggests that the company was more efficient in managing its accounts payable in 2021 compared to the previous year.

Moreover, the payables turnover ratio has been showing an overall increasing trend from 2019 to 2022, indicating that the company has been more efficient in managing its trade payables during this period. However, the slight decrease in 2023 raises some concerns about the company's payment practices and liquidity management.

Overall, the payables turnover ratio for Amphastar Pharmaceuticals Inc has exhibited fluctuations over the past five years, with some years showing improvements in efficiency while others showing a slight decline. It is important for investors and stakeholders to monitor this ratio closely as it reflects the company's ability to effectively manage its accounts payable.