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.
Peer comparison
Dec 31, 2023