Fulgent Genetics Inc (FLGT)

Payables turnover

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cost of revenue (ttm) US$ in thousands 184,757 194,198 208,915 221,699 252,067 259,484 243,390 219,183 215,533 205,171 187,966 159,825 89,807 41,669 19,293 15,196 14,107 13,242 11,969 10,893
Payables US$ in thousands 15,360 15,772 20,607 22,080 23,093 14,481 37,109 23,699 20,494 24,868 14,743 17,440 26,488 18,674 3,636 2,855 1,581 2,150 1,175 1,456
Payables turnover 12.03 12.31 10.14 10.04 10.92 17.92 6.56 9.25 10.52 8.25 12.75 9.16 3.39 2.23 5.31 5.32 8.92 6.16 10.19 7.48

December 31, 2023 calculation

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

Fulgent Genetics Inc's payables turnover has shown fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is managing its payables effectively.

In Q4 2023, the payables turnover ratio was 12.03, slightly lower than Q3 2023's 12.31. This indicates that Fulgent Genetics Inc took longer to pay its suppliers compared to the previous quarter but still maintained a relatively high turnover ratio.

Looking further back, we see a general upward trend in payables turnover from Q1 2022 to Q3 2023, reflecting improving efficiency in paying suppliers. Q4 2022 saw a peak at 10.92, which was sustained in the following quarters. However, the ratio dropped in Q2 2022 to 6.56, indicating a possible delay in paying suppliers.

Overall, Fulgent Genetics Inc's payables turnover has generally been on an upward trajectory, signaling better management of payables and potentially stronger supplier relationships. It is essential to monitor this metric consistently to ensure that the company continues to effectively manage its payables.