Biogen Inc (BIIB)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	5,130,800	5,041,700	5,331,600	5,400,300	5,542,500	5,433,300	4,957,700	4,909,800	5,059,300	5,931,600	6,049,300	6,019,100	5,665,300	3,826,700	3,109,900	2,424,000	1,805,200	1,761,600	1,742,500	1,807,700
Payables	US$ in thousands	424,200	422,700	354,500	387,000	403,300	440,100	445,400	491,200	491,500	383,200	434,800	398,700	589,200	427,900	375,300	430,400	454,900	398,400	383,900	389,000
Payables turnover		12.10	11.93	15.04	13.95	13.74	12.35	11.13	10.00	10.29	15.48	13.91	15.10	9.62	8.94	8.29	5.63	3.97	4.42	4.54	4.65

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,130,800K ÷ $424,200K
= 12.10

The payables turnover ratio for Biogen Inc has shown a fluctuating trend over the periods provided. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its suppliers during a specific period.

From March 31, 2020, to December 31, 2022, the payables turnover ratio steadily increased from 4.65 to 10.29. This suggests that Biogen Inc was paying off its suppliers more frequently during this period, which could be a positive sign of good liquidity management.

However, from March 31, 2023, to December 31, 2024, the payables turnover ratio fluctuated between 10.00 and 15.04. This variation may indicate changes in the company's payment policies or supplier relationships during these periods.

Overall, a higher payables turnover ratio implies that the company is efficiently managing its accounts payable and paying off its suppliers in a timely manner. It is essential for investors and analysts to monitor this ratio to assess the company's liquidity position and supplier relationships.