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.