Avantor Inc (AVTR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,603,400	4,909,600	4,883,400	4,313,100	4,119,600
Payables	US$ in thousands	625,900	758,200	755,100	678,900	560,200
Payables turnover		7.35	6.48	6.47	6.35	7.35

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,603,400K ÷ $625,900K
= 7.35

Based on the data provided, Avantor Inc's payables turnover ratio has fluctuated over the past five years. The payables turnover ratio indicates how efficiently a company is managing its accounts payable.

The trend shows that in 2019 and 2023, Avantor Inc had the highest payables turnover ratio of 7.35, which may suggest that the company is paying off its suppliers more frequently within the year compared to other years.

In 2020 and 2022, the payables turnover ratio decreased to 6.35 and 6.48, respectively. This could indicate a slight decrease in the efficiency of Avantor Inc in managing its payables during those years.

However, in 2021, the payables turnover ratio increased slightly to 6.47, showing some improvement in the management of accounts payables compared to the previous year.

Overall, the fluctuations in Avantor Inc's payables turnover ratio suggest varying levels of efficiency in managing its accounts payables over the past five years. Further analysis of the company's financial statements and industry trends may provide more insights into the factors affecting these fluctuations.