CONMED Corporation (CNMD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 568,499 | 474,227 | 442,599 | 402,159 | 430,382 |
| Payables | US$ in thousands | 88,224 | 73,393 | 58,197 | 53,310 | 55,968 |
| Payables turnover | 6.44 | 6.46 | 7.61 | 7.54 | 7.69 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $568,499K ÷ $88,224K
= 6.44
The payables turnover ratio for Conmed Corp. has shown a decreasing trend over the five-year period from 2019 to 2023. In 2019, the payables turnover ratio was 7.69, which gradually declined to 6.44 in 2023. This indicates that the company is taking longer to pay off its accounts payable obligations in recent years.
A decreasing payables turnover ratio could suggest that Conmed Corp. is taking more time to pay its suppliers, which may signal potential liquidity issues or financial stress. It could also imply that the company is extending its payment terms with suppliers, possibly to manage cash flow or maintain liquidity.
It is essential for investors and stakeholders to monitor the payables turnover ratio to assess Conmed Corp.'s efficiency in managing its accounts payable and its relationships with suppliers. Additionally, a declining payables turnover ratio may warrant further investigation into the company's financial health and working capital management practices.
Peer comparison
Dec 31, 2023