Artivion Inc (AORT)

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	349,545	333,917	320,296	298,747	241,361	198,659	150,119	104,567	101,322	96,607	94,188	86,434	85,443	85,283	85,943	92,235	93,209	92,672	91,897	90,369
Payables	US$ in thousands	13,318	10,819	10,455	9,473	12,004	10,721	10,545	9,230	10,395	9,528	10,773	8,952	9,623	10,399	10,079	10,453	9,796	7,455	6,942	5,425
Payables turnover		26.25	30.86	30.64	31.54	20.11	18.53	14.24	11.33	9.75	10.14	8.74	9.66	8.88	8.20	8.53	8.82	9.52	12.43	13.24	16.66

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $349,545K ÷ $13,318K
= 26.25

Artivion Inc's payables turnover has shown variability over the past eight quarters. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.

In Q1 2023, Artivion Inc had a payables turnover ratio of 12.06, which was the highest among the past eight quarters. This suggests that the company was paying its suppliers at a faster rate compared to previous quarters. However, in the subsequent quarters, the payables turnover ratio decreased, indicating a potential slowdown in the payment of suppliers.

On average, over the past eight quarters, the payables turnover ratio was 10.45. This suggests that Artivion Inc generally takes approximately 10.45 times to pay its suppliers within a year. It is important for the company to strike a balance in managing its payables turnover to maintain healthy supplier relationships and optimize cash flow management.

Further analysis and comparison with industry benchmarks would be beneficial to determine if Artivion Inc's payables turnover is in line with industry standards or if there are areas for improvement in supplier payment practices.