Globus Medical (GMED)

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	548,174	353,279	283,386	275,383	263,725	254,930	247,987	243,363	239,223	238,286	236,829	223,626	217,463	205,364	193,654	187,001	179,975	177,169	169,631	163,278
Payables	US$ in thousands	56,671	86,934	33,811	39,835	36,101	31,971	34,195	26,093	21,955	20,678	21,270	22,409	18,205	30,022	27,715	24,227	24,614	24,137	23,745	25,031
Payables turnover		9.67	4.06	8.38	6.91	7.31	7.97	7.25	9.33	10.90	11.52	11.13	9.98	11.95	6.84	6.99	7.72	7.31	7.34	7.14	6.52

December 31, 2023 calculation

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

Payables turnover is a financial ratio that measures how efficiently a company manages its payments to suppliers. It is calculated by dividing the total purchases made on credit by the average accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Looking at the payables turnover data for Globus Medical Inc, we observe fluctuations over the past eight quarters. In Q4 2023, the payables turnover ratio was 9.67, significantly higher compared to the previous quarter's ratio of 4.06 in Q3 2023. This increase suggests that the company paid its suppliers more frequently in Q4 2023, which may imply improved cash flow management or more efficient working capital utilization.

Further analysis reveals that the payables turnover ratio in Q4 2023 was also higher than the ratios in Q2 2023 (8.38) and Q1 2023 (6.91), indicating a positive trend in managing payables during the year. However, compared to the same quarter in the previous year (Q4 2022 - 7.31), the latest ratio shows an improvement.

The overall trend for payables turnover at Globus Medical Inc over the last eight quarters appears to be variable, with peaks and troughs in the ratio. Sustained higher payables turnover ratios could suggest a consistent effort to optimize payment terms and maintain good supplier relationships. However, it is essential to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance and management of its payables.