Amphastar P (AMPH)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	358,112	293,274	250,127	238,029	206,506
Payables	US$ in thousands	30,514	25,438	20,501	22,214	24,357
Payables turnover		11.74	11.53	12.20	10.72	8.48

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $358,112K ÷ $30,514K
= 11.74

Analyzing the payables turnover ratio of Amphastar P over the period from December 31, 2020, to December 31, 2024, reveals an increasing trend. The payables turnover ratio rose from 8.48 in 2020 to 11.74 in 2024, indicating the company is managing its accounts payable more efficiently.

A higher payables turnover ratio suggests that Amphastar P is paying off its suppliers more frequently within the given period. This could indicate stronger supplier relationships or efficient working capital management.

The steady increase in the payables turnover ratio over the years demonstrates that the company is effectively managing its payables, which can positively impact its cash flow and liquidity position.

Overall, the trend in the payables turnover ratio suggests that Amphastar P has been improving its payment terms with suppliers and efficiently managing its accounts payable, which could be a positive indicator of the company's financial health and operational efficiency.