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.