FormFactor Inc (FORM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 546,219 | 608,780 | 595,067 | 548,785 | 485,975 |
| Payables | US$ in thousands | 63,857 | 69,308 | 57,862 | 62,045 | 40,914 |
| Payables turnover | 8.55 | 8.78 | 10.28 | 8.84 | 11.88 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $546,219K ÷ $63,857K
= 8.55
FormFactor Inc's payables turnover ratio has shown fluctuations over the past five years. The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period.
In 2023, the payables turnover ratio decreased to 8.55 from 8.78 in 2022. This decline may indicate that FormFactor Inc took longer to pay off its accounts payable in 2023 compared to 2022.
Similarly, in 2021, the payables turnover ratio decreased significantly to 10.28 from 8.84 in 2020. This could suggest that the company was managing its accounts payable more efficiently in 2021.
The highest payables turnover ratio of 11.88 was observed in 2019, indicating that FormFactor Inc paid off its accounts payable almost 12 times during that year.
Overall, while the payables turnover ratio has fluctuated, investors may want to further investigate the reasons behind these variations, as they could provide insights into FormFactor Inc's liquidity management and vendor relationships.
Peer comparison
Dec 31, 2023