Edwards Lifesciences Corp (EW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,209,300 | 2,707,700 | 2,750,600 | 2,314,800 | 2,361,400 |
| Payables | US$ in thousands | 201,400 | 201,900 | 204,500 | 196,500 | 180,400 |
| Payables turnover | 15.93 | 13.41 | 13.45 | 11.78 | 13.09 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,209,300K ÷ $201,400K
= 15.93
From the data provided, we can observe that Edwards Lifesciences Corp's payables turnover has shown some fluctuations over the past five years.
The payables turnover ratio measures how efficiently a company is managing its payments to suppliers. A higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly.
In 2023, Edwards Lifesciences Corp's payables turnover ratio increased to 6.85, showing an improvement compared to the previous year. This suggests that the company was able to pay its suppliers at a faster rate in 2023.
The trend of increasing payables turnover ratios from 2020 to 2023 indicates that Edwards Lifesciences Corp has been managing its payables effectively and has been able to optimize its payment processes.
Overall, based on the increasing trend in payables turnover ratios, Edwards Lifesciences Corp appears to have a solid payment management system in place, which is crucial for maintaining good relationships with suppliers and managing working capital efficiently.
Peer comparison
Dec 31, 2023