Amphastar P (AMPH)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	358,112	340,202	323,082	308,828	293,274	275,164	264,630	251,767	250,127	250,925	250,321	244,497	238,029	232,465	218,373	216,715	206,506	197,419	195,381	189,412
Payables	US$ in thousands	30,514	34,088	31,775	36,534	25,438	31,970	18,832	21,979	20,501	19,963	31,071	23,843	22,214	21,658	27,752	22,987	24,357	23,170	21,708	16,506
Payables turnover		11.74	9.98	10.17	8.45	11.53	8.61	14.05	11.45	12.20	12.57	8.06	10.25	10.72	10.73	7.87	9.43	8.48	8.52	9.00	11.48

December 31, 2024 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times during a period the company pays off its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Looking at the data provided for Amphastar P's payables turnover, we observe fluctuating values over the periods. The ratio ranged from a low of 7.87 on June 30, 2021, to a high of 14.05 on June 30, 2023.

A decreasing trend was noted from September 30, 2021, to September 30, 2022, followed by an increase until June 30, 2023, suggesting potential changes in the company's payment practices. The ratio then decreased again by December 31, 2024, compared to the peak observed in June 30, 2023.

It would be beneficial for Amphastar P to analyze the reasons behind these fluctuations to ensure efficient management of its accounts payable. Further investigation could identify any issues affecting payment terms with suppliers or improvements in cash flow management strategies. Additionally, comparing this ratio to industry benchmarks can provide insights into the company's performance relative to its peers in managing payables.