Balchem Corporation (BCPC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 620,383 | 661,907 | 555,849 | 479,747 | 432,338 |
| Payables | US$ in thousands | 55,503 | 57,322 | 56,243 | 23,742 | 37,267 |
| Payables turnover | 11.18 | 11.55 | 9.88 | 20.21 | 11.60 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $620,383K ÷ $55,503K
= 11.18
Balchem Corp.'s payables turnover ratio has fluctuated over the past five years. In 2023, the payables turnover ratio was 11.18, indicating that the company takes approximately 11.18 times to pay off its accounts payable during the year. This represents a slight decrease from the previous year's ratio of 11.55.
Compared to 2021 when the ratio was 9.88, the payables turnover has improved, suggesting that Balchem Corp. managed its accounts payable more efficiently in 2023. However, 2020 stands out as an exceptional year with a significantly higher payables turnover ratio of 20.21, indicating that the company was able to settle its payables more frequently that year.
Overall, the payables turnover ratio for Balchem Corp. has shown variability in recent years. It is essential for the company to monitor and manage its payables effectively to ensure a balance between maintaining good relationships with suppliers and optimizing cash flow.
Peer comparison
Dec 31, 2023