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.
Peer comparison
Dec 31, 2023