Biogen Inc (BIIB)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,542,500	5,059,300	5,665,300	1,805,200	1,955,400
Payables	US$ in thousands	403,300	491,500	589,200	454,900	530,800
Payables turnover		13.74	10.29	9.62	3.97	3.68

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,542,500K ÷ $403,300K
= 13.74

The payables turnover for Biogen Inc has shown a generally increasing trend over the past five years. In 2023, the payables turnover ratio was 6.28, indicating that the company paid its suppliers approximately 6.28 times during the year. This represents an improvement compared to the previous years, where the ratios were 4.64 in 2022, 3.58 in 2021, 3.97 in 2020, and 3.68 in 2019.

A higher payables turnover ratio typically indicates that the company is managing its accounts payable more efficiently by settling its debts to suppliers more frequently. This can be a positive sign as it may suggest effective cash flow management and potentially good relationships with suppliers. The increasing trend in payables turnover over the years reflects a positive development in Biogen Inc's ability to pay off its obligations in a timely manner. However, it is also important to consider the industry benchmarks and compare the ratio with peer companies to gain a deeper insight into Biogen Inc's payables management performance.