Boston Scientific Corp (BSX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,536,000 | 9,482,000 | 9,270,000 | 8,671,000 | 7,964,000 |
| Payables | US$ in thousands | 942,000 | 862,000 | 794,000 | 513,000 | 542,000 |
| Payables turnover | 11.18 | 11.00 | 11.68 | 16.90 | 14.69 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,536,000K ÷ $942,000K
= 11.18
The payables turnover ratio measures how efficiently Boston Scientific Corp. is managing its trade payables by evaluating how many times the company pays off its suppliers in a given period.
Based on the data provided, the payables turnover ratio for Boston Scientific Corp. has been relatively stable over the past five years, ranging from 4.59 to 6.75. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could be a sign of strong liquidity or effective management of trade credit terms.
In 2023, the payables turnover ratio was 4.61, slightly higher than the previous year but within the range of values seen in the previous four years. This indicates that Boston Scientific Corp. continued to efficiently manage its payables during the year by effectively balancing the timing of payments to suppliers.
Overall, the consistent payables turnover ratio over the years suggests that Boston Scientific Corp. is effectively managing its trade payables and maintaining good relationships with its suppliers. The company's ability to maintain a stable payables turnover ratio reflects sound financial management practices.
Peer comparison
Dec 31, 2023