Fulgent Genetics Inc (FLGT)

Payables turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 184,757 252,067 215,533 89,807 14,107
Payables US$ in thousands 15,360 23,093 20,494 26,488 1,581
Payables turnover 12.03 10.92 10.52 3.39 8.92

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $184,757K ÷ $15,360K
= 12.03

Fulgent Genetics Inc's payables turnover has shown a generally increasing trend over the past five years. As of December 31, 2023, the payables turnover ratio stood at 12.03, indicating that the company paid its suppliers approximately 12 times during the year. This represents an improvement from 2022 (10.92) and 2021 (10.52), suggesting that Fulgent Genetics is managing its accounts payable more efficiently.

The significant increase in payables turnover from 2020 (3.39) to 2021 highlights a substantial improvement in the company's ability to pay off its suppliers promptly. The ratio dipped in 2020, which could be attributed to various reasons such as changes in the company's payment policies, economic conditions, or supplier relationships.

Overall, the upward trend in payables turnover reflects Fulgent Genetics' effective management of its accounts payable and indicates a positive relationship with suppliers, demonstrating the company's financial health and liquidity position. An increasing payables turnover ratio generally implies that the company is efficiently managing its working capital and paying off its obligations in a timely manner.