Cohu Inc (COHU)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 504,569 | 594,717 | 664,634 | 551,126 | 550,527 |
| Payables | US$ in thousands | 33,600 | 51,763 | 85,230 | 67,923 | 48,697 |
| Payables turnover | 15.02 | 11.49 | 7.80 | 8.11 | 11.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $504,569K ÷ $33,600K
= 15.02
Based on the data provided, the payables turnover for Cohu Inc has been fluctuating over the past five years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing its purchases to the average accounts payable balance.
In 2023, Cohu Inc's payables turnover ratio increased to 15.02 from 11.49 in 2022, indicating that the company took less time to pay off its suppliers compared to the previous year. This could suggest that Cohu Inc improved its efficiency in managing its accounts payable and may have negotiated more favorable payment terms with its suppliers.
Comparing 2023 to 2021 and 2020, the payables turnover ratio has shown a significant improvement. In 2021, the ratio was 7.80, which increased to 8.11 in 2020, and then further increased to 11.49 in 2022. This trend reflects an increasing efficiency in managing the company's accounts payable over these years.
However, when comparing the most recent data to 2019, there was a slight decline in the payables turnover ratio from 11.31 in 2019 to 11.49 in 2022. This could indicate that Cohu Inc took slightly longer to pay off its suppliers in 2022 compared to 2019.
Overall, the increasing trend in Cohu Inc's payables turnover ratio is a positive indication of the company's ability to efficiently manage its accounts payable and cash flow. It suggests that the company is effectively utilizing its working capital and maintaining good relationships with its suppliers.
Peer comparison
Dec 31, 2023