Artivion Inc (AORT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 349,545 | 284,537 | 101,322 | 85,443 | 93,209 |
| Payables | US$ in thousands | 13,318 | 12,004 | 10,395 | 9,623 | 9,796 |
| Payables turnover | 26.25 | 23.70 | 9.75 | 8.88 | 9.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $349,545K ÷ $13,318K
= 26.25
The payables turnover ratio for Artivion Inc has been relatively consistent over the past five years, ranging from 8.88 in 2020 to 9.75 in 2021. The ratio measures how efficiently the company is managing its payables by calculating how many times the company pays off its suppliers within a given period.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could be a positive sign of effective cash management or strong vendor relationships. On the other hand, a lower ratio may suggest the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained supplier relationships.
Artivion Inc's payables turnover ratio has generally been stable and within a narrow range, implying consistent payment practices with its suppliers. Further analysis is needed to understand the specific factors driving the changes in the ratio over the years and assess the company's overall financial health and liquidity position.
Peer comparison
Dec 31, 2023