Avanos Medical Inc (AVNS)

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	645,700	716,000	735,500	746,500	746,300	738,100	735,400	745,700	727,800	771,000	772,100	738,600	744,700	699,900	697,300	712,100	714,500	880,300	709,700	687,400
Payables	US$ in thousands	56,300	52,100	65,400	59,600	67,900	62,700	64,200	63,800	56,400	54,900	65,500	59,200	67,600	75,900	75,800	73,500	83,000	94,700	99,400	148,800
Payables turnover		11.47	13.74	11.25	12.53	10.99	11.77	11.45	11.69	12.90	14.04	11.79	12.48	11.02	9.22	9.20	9.69	8.61	9.30	7.14	4.62

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $645,700K ÷ $56,300K
= 11.47

The payables turnover ratio for Avanos Medical Inc has exhibited some fluctuations over the past eight quarters. The ratio ranged from a low of 5.21 in Q4 2023 to a high of 6.42 in Q3 2023. This indicates that the company has been able to effectively manage its accounts payable in relation to its cost of goods sold during these periods.

On average, Avanos Medical Inc is taking around 5 to 6 times during the year to pay off its suppliers or trade payables. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which may indicate good relationships with suppliers or efficient working capital management. However, a very high ratio could also indicate that the company is not taking full advantage of credit terms offered by suppliers.

Overall, the payables turnover ratio for Avanos Medical Inc appears to be relatively stable, with some variability seen in recent quarters. Further analysis of the company's payment policies, supplier relationships, and industry benchmarks could provide more insights into the efficiency of its accounts payable management.