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.
Peer comparison
Dec 31, 2023