FormFactor Inc (FORM)

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	509,882	542,958	562,648	576,612	608,780	593,753	582,712	586,221	594,433	603,884	595,717	567,216	548,785	522,103	499,764	495,152	479,008	456,396	453,398	448,837
Payables	US$ in thousands	63,857	61,589	63,770	63,756	69,308	75,021	60,927	65,378	57,862	64,925	62,445	67,720	62,045	62,903	44,334	40,139	40,914	50,968	26,252	31,555
Payables turnover		7.98	8.82	8.82	9.04	8.78	7.91	9.56	8.97	10.27	9.30	9.54	8.38	8.84	8.30	11.27	12.34	11.71	8.95	17.27	14.22

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $509,882K ÷ $63,857K
= 7.98

The payables turnover ratio for FormFactor Inc has shown fluctuations over the past several reporting periods. The ratio measures how quickly the company is able to pay its suppliers. A higher turnover ratio indicates that the company is managing its payables efficiently.

Looking at the trend, the payables turnover ratio has generally been fluctuating between 7.91 and 12.34 over the past two years. There are some spikes in the ratio, particularly in March 2020 and June 2019, where the ratio was notably higher at 12.34 and 17.27, respectively. These spikes indicate that FormFactor Inc might have been able to pay its suppliers more quickly during those periods.

Overall, the average payables turnover ratio for FormFactor Inc over the period appears to be in the range of 8.5 to 10.5, which suggests that the company has been effectively managing its payables. It is important to continue monitoring this ratio to ensure that the company maintains efficient payment practices with its suppliers.