Cognex Corporation (CGNX)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	677,452	650,322	619,128	599,507	578,569	1,023,645	1,019,625	1,031,466	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
Payables	US$ in thousands	38,046	29,984	22,617	27,459	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
Payables turnover		17.81	21.69	27.37	21.83	26.97	44.40	39.05	38.29	38.76	27.19	31.15	13.89	13.36	16.28	12.31	19.07	23.61	23.47	27.32	28.62

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $677,452K ÷ $38,046K
= 17.81

The payables turnover ratio for Cognex Corporation has shown fluctuations over the past few years based on the provided data. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays its average accounts payable amount during a period.

The payables turnover ratio decreased from March 2020 to March 2021, signaling a slower rate of paying off its suppliers. This could be attributed to various factors such as changes in vendor terms, economic conditions, or inventory management practices.

From June 2021 to September 2022, there was a period of fluctuation in the payables turnover ratio, indicating potential challenges in managing payables efficiently during that time frame.

The ratio significantly increased in the latter part of 2022 into 2023, reaching its highest point in September 2023. This suggests an improvement in the company's ability to pay off its suppliers promptly, which could be due to better cash flow management or negotiation of favorable payment terms.

However, there was a notable decline in the payables turnover ratio from September 2023 to December 2024, indicating a potential slowdown in the company's payments to suppliers during that period.

Overall, the trend in Cognex Corporation's payables turnover ratio suggests varying levels of efficiency in managing its accounts payable over the years, with some periods showing improvements and others indicating potential challenges. It would be essential for stakeholders to assess the underlying reasons for these fluctuations to identify areas for improvement in the company's financial management practices.