Globus Medical (GMED)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	548,174	263,725	239,223	217,463	179,975
Payables	US$ in thousands	56,671	36,101	21,955	18,205	24,614
Payables turnover		9.67	7.31	10.90	11.95	7.31

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $548,174K ÷ $56,671K
= 9.67

To analyze Globus Medical Inc's payables turnover over the past five years, we observe significant fluctuations in the ratio. The payables turnover ratio measures the efficiency with which the company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently within a given period.

In 2023, the payables turnover ratio increased to 9.67, a substantial improvement from 7.31 in 2022. This suggests that the company managed its accounts payable more efficiently and paid its suppliers at a quicker pace compared to the previous year.

Looking back at 2021, the payables turnover ratio was 10.90, showing a strong ability to pay suppliers promptly. This was slightly lower than the ratio of 11.95 in 2020, indicating a slight dip in efficiency in managing payables during that year.

Comparing these results to 2019, where the payables turnover ratio was also 7.31, we can observe that there has been a consistent effort by Globus Medical Inc to improve its payables management efficiency over the years.

Overall, the trend in payables turnover demonstrates the company's focus on managing its accounts payable efficiently, which is crucial for maintaining good relationships with suppliers and optimizing working capital management.