Exelixis Inc (EXEL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 666,404 | 615,252 | 517,765 | 454,588 | 329,627 |
| Payables | US$ in thousands | 38,191 | 33,768 | 32,667 | 24,258 | 23,632 |
| Payables turnover | 17.45 | 18.22 | 15.85 | 18.74 | 13.95 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $666,404K ÷ $38,191K
= 17.45
The payables turnover ratio for Exelixis Inc has shown a positive trend over the past five years, increasing from 13.95 in December 2020 to 17.45 in December 2024. This indicates that the company is managing its accounts payable more efficiently, as it is taking less time to pay off its suppliers. A higher payables turnover ratio suggests that the company is able to negotiate better payment terms with its suppliers or manage its cash flow effectively. However, it is essential for the company to strike a balance in managing payables turnover to ensure good relationships with suppliers while optimizing working capital efficiency. Overall, the increasing trend in payables turnover ratio reflects a positive aspect of Exelixis Inc's financial management.
Peer comparison
Dec 31, 2024