Danaher Corporation (DHR)

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	18,002,000	21,692,000	21,896,000	21,655,000	21,788,000	21,697,000	21,401,000	21,073,000	20,447,000	19,653,000	19,189,000	18,532,000	17,219,000	14,580,800	13,996,400	13,817,400	14,140,700	14,509,700	13,169,600	11,805,700
Payables	US$ in thousands	1,766,000	1,894,000	1,956,000	2,081,000	2,296,000	2,191,000	—	—	2,569,000	—	—	—	2,049,000	—	—	—	—	—	—	—
Payables turnover		10.19	11.45	11.19	10.41	9.49	9.90	—	—	7.96	—	—	—	8.40	—	—	—	—	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,002,000K ÷ $1,766,000K
= 10.19

The payables turnover ratio measures how efficiently a company is managing its accounts payable by assessing how many times a company pays off its average accounts payable balance during a certain period.

Based on the data provided for Danaher Corp., we observe fluctuations in the payables turnover ratio over the past 8 quarters. The payables turnover ratio ranged from a low of 5.00 in Q2 2022 to a high of 6.45 in Q3 2023. This indicates variability in the company's ability to manage its accounts payable efficiently.

The increasing trend in the payables turnover ratio from Q1 2023 to Q3 2023 suggests that Danaher Corp. has been paying off its accounts payable more frequently during this period. This may indicate improved liquidity or better supplier terms.

However, the ratio decreased in Q4 2023 compared to the previous quarter, which could suggest a slowdown in accounts payable management efficiency or changes in payment terms.

It is important for investors and stakeholders to monitor the payables turnover ratio consistently to understand how effectively Danaher Corp. is managing its payables and to assess the impact on the company's working capital management and overall financial health.