GE HealthCare Technologies Inc. (GEHC)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,271,000 | 4,369,000 | 4,332,000 | 4,317,000 | 4,317,000 | 6,117,000 |
| Payables | US$ in thousands | 3,022,000 | 2,911,000 | 2,824,000 | 2,931,000 | 2,947,000 | 2,774,000 |
| Payables turnover | 1.41 | 1.50 | 1.53 | 1.47 | 1.46 | 2.21 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,271,000K ÷ $3,022,000K
= 1.41
The payables turnover ratio for GE HealthCare Technologies Inc. has shown fluctuation throughout the period under consideration. The ratio indicates how efficiently the company is managing its trade payables by measuring the number of times the company pays off its suppliers in a given period.
In September 2023, the payables turnover ratio was 2.21, which decreased to 1.46 by December 2023. This sharp decline may suggest that the company took longer to pay off its suppliers towards the end of the year. However, there was a slight improvement in the ratio to 1.47 by March 2024.
From March to June 2024, there was another modest increase in the payables turnover ratio to 1.53, indicating that the company was managing its trade payables more effectively. However, this improvement was not sustainable as the ratio dropped to 1.50 by September 2024. By December 2024, the ratio decreased further to 1.41, suggesting a potential extension in the payment period to suppliers.
Overall, the fluctuating pattern of the payables turnover ratio for GE HealthCare Technologies Inc. may indicate varying payment practices and the company's ability to maintain relationships with its suppliers. Further analysis of the company's cash flow management and supplier relationships would be beneficial to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2024