Avantor Inc (AVTR)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	4,504,300	4,603,400	4,909,600	4,883,400	4,313,100
Payables	US$ in thousands	662,800	625,900	758,200	755,100	678,900
Payables turnover		6.80	7.35	6.48	6.47	6.35

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,504,300K ÷ $662,800K
= 6.80

The payables turnover ratio for Avantor Inc has been relatively stable over the years, ranging from 6.35 to 7.35. This indicates that the company is able to efficiently manage its accounts payable by paying off its suppliers multiple times throughout the year. A higher payables turnover ratio generally suggests that the company is taking less time to pay its suppliers, which could potentially improve relationships with suppliers and even result in better credit terms. However, it's important to note that a very high ratio may also indicate aggressive payables management or potential liquidity issues. Overall, Avantor Inc's consistent payables turnover ratios reflect effective management of its accounts payable and relationships with suppliers.