Embecta Corp (EMBC)

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
Cost of revenue (ttm) US$ in thousands 747,800 724,300 355,100 342,900 320,900 246,200
Payables US$ in thousands 99,700 126,600 124,700 126,800 106,900 107,900 64,300 50,800 58,100
Payables turnover 7.50 5.72 2.85 2.70 3.00 2.28

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $747,800K ÷ $99,700K
= 7.50

The payables turnover ratio for Embecta Corp has shown varying trends over the past few quarters. In the most recent quarter ending in December 2023, the payables turnover ratio was 7.50, indicating that the company paid off its accounts payable 7.50 times during the year. This is a significant improvement compared to the previous quarter, where the ratio was 5.72.

In general, a higher payables turnover ratio suggests that the company is managing its accounts payable more efficiently, possibly negotiating better payment terms with suppliers or experiencing improved cash flow. However, it is important to note that an extremely high payables turnover ratio could also indicate that the company is using aggressive tactics to delay payments to suppliers.

Looking at the historical data, the payables turnover ratio has generally been increasing over the past few quarters, which could be a positive sign of improved efficiency in managing payables. It is important for stakeholders to monitor this ratio closely to ensure that the company's working capital management remains optimal and sustainable in the long run.


Peer comparison

Dec 31, 2023