Bio-Rad Laboratories Inc (BIO)

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	2,038,039	2,093,016	2,113,431	2,091,228	2,042,044	2,104,113	2,112,922	2,137,732	2,198,058	2,112,076	2,064,329	1,974,325	1,835,471	1,899,993	1,875,905	1,902,758	1,904,088	1,681,034	1,686,323	1,706,485
Payables	US$ in thousands	144,625	111,859	149,535	160,979	135,041	142,746	158,259	160,651	141,941	136,398	133,457	138,494	139,451	132,994	—	—	107,014	—	—	—
Payables turnover		14.09	18.71	14.13	12.99	15.12	14.74	13.35	13.31	15.49	15.48	15.47	14.26	13.16	14.29	—	—	17.79	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,038,039K ÷ $144,625K
= 14.09

Bio-Rad Laboratories Inc.'s payables turnover ratio measures how efficiently the company is managing its accounts payable during the specified periods.

Based on the data provided, the payables turnover ratio fluctuated across the quarters. In Q3 2023, the ratio was the highest at 11.32, indicating that the company converted its accounts payable into purchases or cash almost 11.32 times during that period. This suggests that Bio-Rad Laboratories Inc. had a relatively efficient management of its payables during that quarter.

In contrast, the payables turnover ratio was the lowest in Q1 2023, at 7.78, showing a relatively slower rate of conversion of accounts payable into purchases or cash compared to other periods. This may indicate a longer payment period to suppliers, which could potentially strain the company's liquidity or relationships with suppliers.

Over the analyzed period, the company's payables turnover ratio ranged between 7.78 and 11.32, with Q3 2023 standing out as the most efficient period in managing payables. It would be beneficial for stakeholders to closely monitor fluctuations in this ratio to assess the company's liquidity, cash flow management, and vendor relationships.