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.