Cognex Corporation (CGNX)

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	494,590	939,666	935,646	947,487	1,050,568	604,262	634,333	621,515	588,446	436,371	397,744	399,845	384,175	503,725	491,645	463,481	398,039	397,641	410,200	411,909
Payables	US$ in thousands	21,454	23,053	26,109	26,939	27,103	22,220	20,364	44,733	44,051	26,797	32,304	20,970	16,270	21,464	17,999	16,195	17,866	12,766	11,729	20,529
Payables turnover		23.05	40.76	35.84	35.17	38.76	27.19	31.15	13.89	13.36	16.28	12.31	19.07	23.61	23.47	27.32	28.62	22.28	31.15	34.97	20.06

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $494,590K ÷ $21,454K
= 23.05

The payables turnover ratio for Cognex Corp. has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company is managing its accounts payable by calculating how many times the company pays off its suppliers within a given period.

In Q4 2023, the payables turnover ratio was 11.01, indicating that Cognex Corp. paid off its suppliers approximately 11 times during that quarter. This was a slight increase from the previous quarter (Q3 2023) when the ratio was 10.61.

Looking back over the last two years, the payables turnover ratio has ranged from a low of 6.75 in Q1 2022 to a high of 15.31 in Q2 2022. The significant increase in Q2 2022 suggests that the company was more efficient in managing its payables during that period.

Overall, the trend in the payables turnover ratio for Cognex Corp. indicates that the company has been effectively managing its accounts payable, with some fluctuations observed over the quarters. A higher ratio generally indicates that the company is paying off its suppliers more frequently, which can be a positive sign of strong liquidity and efficient working capital management.