Biogen Inc (BIIB)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	1,955,400	1,996,800	2,027,600	1,972,300
Payables	US$ in thousands	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	530,800	382,200	377,100	378,000
Payables turnover		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	3.68	5.22	5.38	5.22

December 31, 2023 calculation

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

To analyze Biogen Inc's payables turnover, we calculate the ratio by dividing the cost of goods sold by the average accounts payable for a specific period. The payables turnover ratio indicates how efficiently a company manages its accounts payable and how quickly it pays off its suppliers.

Over the past eight quarters, Biogen Inc's payables turnover ratio has fluctuated. In Q4 2023, the payables turnover ratio was 6.28, indicating that the company paid off its suppliers approximately 6.28 times during that quarter. This was higher than the ratios in the previous three quarters, showing an improvement in managing accounts payable.

The payables turnover ratio decreased in Q1 2023 to 4.45, which suggests that the company took longer to pay its suppliers compared to the previous quarter. However, the ratio remained above 4.0, indicating that Biogen Inc still maintained a relatively efficient accounts payable management during this period.

Comparing the data over the past eight quarters, we can see some variability in Biogen Inc's payables turnover, with fluctuations between 4.45 and 6.28. This variability may be influenced by factors such as changes in the company's purchasing patterns, negotiation terms with suppliers, or seasonal variations in operating activities.

Overall, a higher payables turnover ratio suggests that Biogen Inc is more efficient in managing its accounts payable and paying off suppliers in a timely manner. Monitoring this ratio over time can provide insights into the company's liquidity, cash flow management, and relationships with suppliers.