Bio-Rad Laboratories Inc (BIO)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,111,140	2,107,340	2,265,560	1,937,470	1,904,290
Payables	US$ in thousands	144,625	135,041	141,941	139,451	107,014
Payables turnover		14.60	15.61	15.96	13.89	17.79

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,111,140K ÷ $144,625K
= 14.60

Bio-Rad Laboratories Inc. has exhibited fluctuations in its payables turnover ratio over the past five years. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its suppliers during a period.

In 2023, the payables turnover ratio decreased to 8.60 from 9.14 in 2022, suggesting a decrease in the efficiency of managing its accounts payable. This could be due to a variety of reasons such as changes in payment terms with suppliers, changes in purchasing strategies, or changes in the company's overall operations.

Comparing to the previous years, the payables turnover ratio in 2023 was lower than in 2021 (9.03) and 2019 (9.86) but higher than in 2020 (7.94). This indicates that in 2023, Bio-Rad Laboratories Inc. took longer to pay off its suppliers compared to 2021 and 2019 but had improved efficiency compared to 2020.

Overall, a lower payables turnover ratio may indicate a potential liquidity issue or inefficiencies in managing suppliers, while a higher ratio may suggest more efficient management of accounts payable. It is important for the company to further investigate the reasons behind the fluctuations in the payables turnover ratio to ensure optimal management of its working capital.