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.