Benchmark Electronics Inc (BHE)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,567,910	2,631,100	2,049,420	1,878,080	2,082,570
Payables	US$ in thousands	367,480	424,272	426,555	282,208	302,994
Payables turnover		6.99	6.20	4.80	6.65	6.87

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,567,910K ÷ $367,480K
= 6.99

The payables turnover ratio of Benchmark Electronics Inc. has shown fluctuations over the past five years. In 2023, the payables turnover ratio increased to 6.99, indicating that the company was able to manage its accounts payable more efficiently compared to the previous year. This improvement suggests that Benchmark Electronics Inc. took less time to pay its suppliers, which could have positive implications for its cash flow management.

In 2022, the payables turnover ratio was 6.20, slightly lower than in 2023 but still relatively high. This indicates that the company was maintaining a good level of efficiency in managing its payables during that period.

The payables turnover ratio was at its lowest in 2021 at 4.80, which could suggest that Benchmark Electronics Inc. took a longer time to pay its suppliers compared to the other years analyzed. However, it is important to consider the industry norms and the company's specific circumstances when assessing the significance of this decrease.

In 2020 and 2019, the payables turnover ratios were 6.65 and 6.82, respectively, showing consistent performance in managing accounts payable during those years.

Overall, the trend in Benchmark Electronics Inc.'s payables turnover ratio indicates that the company has been relatively efficient in managing its payables, with some fluctuations over the years. Further analysis of the company's financial health and operational performance would provide more insights into the factors driving these changes in the payables turnover ratio.