Exelixis Inc (EXEL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	615,252	517,765	454,588	329,627	261,341
Payables	US$ in thousands	33,768	32,667	24,258	23,632	11,581
Payables turnover		18.22	15.85	18.74	13.95	22.57

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $615,252K ÷ $33,768K
= 18.22

Exelixis Inc's payables turnover ratio has fluctuated over the past five years. The payables turnover ratio indicates how many times a company pays off its average accounts payable balance during a period. A higher payables turnover ratio generally suggests that a company is efficiently managing its payments to suppliers.

In 2023, the payables turnover ratio stood at 18.22, reflecting an increase from the previous year (15.85). This improvement indicates that Exelixis Inc paid off its accounts payable balance more frequently in 2023, demonstrating a more efficient management of its trade credit obligations.

Comparing the 2023 ratio to the ratios of the previous years, Exelixis Inc's performance seems to have improved significantly in managing its payables turnover since 2020. In 2020, the payables turnover ratio was at 13.95, showing a notable increase to 18.22 in 2023. However, the ratio was much higher in 2019, at 22.57, signaling that the company paid off its accounts payable more frequently in that year compared to 2023.

Overall, the trend in Exelixis Inc's payables turnover ratio indicates fluctuations over the years, with some improvements in recent periods. Further analysis would be necessary to understand the factors driving these changes and to assess the effectiveness of the company's payables management strategies.