Garmin Ltd (GRMN)

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	2,884,819	2,807,132	2,716,181	2,653,697	2,860,034	2,683,150	2,682,210	2,690,805	2,578,231	2,712,875	2,637,679	2,412,319	2,310,280	2,183,433	2,091,782	2,113,542	2,068,321	1,971,721	1,923,960	1,907,429
Payables	US$ in thousands	253,790	268,030	253,803	208,796	212,417	268,674	319,732	298,992	370,048	318,604	303,947	250,789	258,885	235,467	193,216	200,281	240,831	235,548	214,763	170,474
Payables turnover		11.37	10.47	10.70	12.71	13.46	9.99	8.39	9.00	6.97	8.51	8.68	9.62	8.92	9.27	10.83	10.55	8.59	8.37	8.96	11.19

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,884,819K ÷ $253,790K
= 11.37

The payables turnover ratio for Garmin Ltd has fluctuated over the past few quarters, ranging from a low of 6.97 in March 2022 to a high of 13.46 in December 2022. This ratio measures how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its suppliers in a given period.

A higher payables turnover ratio typically indicates that the company is paying off its suppliers more frequently, which can be a sign of good financial health and strong supplier relationships. In contrast, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or indicate cash flow issues.

Overall, the payables turnover ratio for Garmin Ltd has shown variability but has generally been above 8 in recent quarters, indicating that the company is effectively managing its accounts payable obligations. It would be important to further investigate the reasons for the fluctuations in the ratio to understand the company's payment patterns and supplier relationships more comprehensively.