Enovis Corp (ENOV)
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 | 1,814,454 | 1,838,423 | 1,799,798 | 1,788,585 | 2,160,718 | 4,431,106 | 4,787,657 | 5,133,898 | 5,024,359 | 3,291,379 | 2,985,175 | 2,579,114 | 2,339,327 | 2,346,667 | 2,363,233 | 2,516,548 | 2,471,312 | 2,512,092 | 2,386,464 | 2,222,807 |
| Payables | US$ in thousands | 132,475 | 125,060 | 147,180 | 151,743 | 135,628 | 179,672 | 159,136 | 537,676 | 155,208 | 472,499 | 453,716 | 406,744 | 330,251 | 306,314 | 298,986 | 368,001 | 359,782 | 376,406 | 399,812 | 705,873 |
| Payables turnover | 13.70 | 14.70 | 12.23 | 11.79 | 15.93 | 24.66 | 30.09 | 9.55 | 32.37 | 6.97 | 6.58 | 6.34 | 7.08 | 7.66 | 7.90 | 6.84 | 6.87 | 6.67 | 5.97 | 3.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,814,454K ÷ $132,475K
= 13.70
The payables turnover ratio of Enovis Corp has fluctuated over the past eight quarters. In Q4 2023, the payables turnover ratio was 5.41, showing an improvement from the previous quarter's ratio of 2.23. This indicates that Enovis Corp is paying its trade payables more frequently compared to the previous period.
Looking at the trend over the past year, Enovis Corp's payables turnover ratio has generally been declining since Q2 2022 when it was at 12.18. A decreasing trend in payables turnover may suggest that the company is taking longer to pay its suppliers or managing its payables more efficiently.
It is important for Enovis Corp to monitor its payables turnover ratio to ensure that it strikes a balance between maintaining good relationships with suppliers by paying on time, and managing its cash flow effectively by stretching payables when possible. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Enovis Corp's payables management efficiency.
Peer comparison
Dec 31, 2023