Garmin Ltd (GRMN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,088,800	2,860,040	2,787,860	2,310,280	2,068,320
Payables	US$ in thousands	253,790	212,417	370,048	258,885	240,831
Payables turnover		12.17	13.46	7.53	8.92	8.59

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,088,800K ÷ $253,790K
= 12.17

The payables turnover ratio for Garmin Ltd has fluctuated over the past five years. In 2023, the payables turnover ratio decreased to 12.17 from 13.46 in 2022. This indicates that Garmin Ltd took longer to pay its suppliers in 2023 compared to the previous year. However, the payables turnover ratio in 2023 is still higher than in 2021 and 2020, suggesting an improvement in the management of payables during the most recent fiscal year. Overall, a higher payables turnover ratio signifies that the company is managing its accounts payables more efficiently by paying its suppliers more quickly. Further analysis of the company's payables management practices and its impact on cash flow would provide more insights into Garmin Ltd's financial health.