Cognex Corporation (CGNX)
Payables turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 580,055 | 601,223 | 590,292 | 517,300 | 466,969 |
Payables | US$ in thousands | 21,454 | 27,103 | 44,051 | 16,270 | 17,866 |
Payables turnover | 27.04 | 22.18 | 13.40 | 31.79 | 26.14 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $580,055K ÷ $21,454K
= 27.04
The payables turnover ratio measures how efficiently Cognex Corp. is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.
In 2023, Cognex Corp.'s payables turnover ratio was 11.01, which increased from 10.49 in 2022. This indicates that the company paid its suppliers approximately 11 times during the year, showing an improvement in the management of its accounts payable.
Comparing the ratio to previous years, the ratio was lower in 2021 at 6.29 and higher in 2020 at 12.69. The ratio in 2023 outperformed both 2021 and 2022, but was slightly lower than the ratio in 2020.
Overall, the increasing trend in payables turnover ratio over the past years suggests that Cognex Corp. has been more effective in managing its payables and is paying its suppliers more promptly, which can positively impact the company's relationships with its suppliers and its working capital management.
Peer comparison
Dec 31, 2023