GE HealthCare Technologies Inc. (GEHC)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,268,000 | 4,316,000 | 4,177,000 |
| Payables | US$ in thousands | 3,022,000 | 2,947,000 | 2,944,000 |
| Payables turnover | 1.41 | 1.46 | 1.42 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,268,000K ÷ $3,022,000K
= 1.41
The payables turnover ratio for GE HealthCare Technologies Inc. has shown consistency over the three years provided, with the following values:
- December 31, 2022: 1.42
- December 31, 2023: 1.46
- December 31, 2024: 1.41
The payables turnover ratio indicates how efficiently the company is managing its trade payables by measuring how many times the company pays off its suppliers in a given period. A higher ratio generally suggests that the company is paying its suppliers more frequently, which could be a positive sign of strong supplier relationships.
In this case, the company's payables turnover ratios have been relatively stable, hovering around the range of 1.41 to 1.46. This consistency implies that GE HealthCare Technologies Inc. is maintaining a steady payment schedule with its suppliers over the years examined, which may indicate a consistent approach to managing its trade payables. Further analysis in conjunction with other financial ratios and metrics could provide a more comprehensive understanding of the company's overall liquidity and operational efficiency.
Peer comparison
Dec 31, 2024