Halozyme Therapeutics Inc (HALO)

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	422,216	403,469	411,415	416,684	355,078	296,418	210,197	133,814	133,336	213,095	242,773	261,658	254,974	187,113	164,635	145,276	175,490	183,004	163,559	159,849
Payables	US$ in thousands	11,816	19,318	10,120	8,695	17,693	18,166	12,232	1,266	1,541	3,322	4,563	535	1,928	433	4,067	8,320	6,434	4,314	12,467	4,089
Payables turnover		35.73	20.89	40.65	47.92	20.07	16.32	17.18	105.70	86.53	64.15	53.20	489.08	132.25	432.13	40.48	17.46	27.28	42.42	13.12	39.09

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $422,216K ÷ $11,816K
= 35.73

Halozyme Therapeutics Inc.'s payables turnover has been showing fluctuations over the quarters based on the data provided. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance.

In Q1 2022, the payables turnover was exceptionally high at 62.49, indicating that the company's accounts payable turnover was very efficient during that period. However, this high ratio may also suggest that the company was paying off its suppliers very quickly, potentially impacting its cash flow.

Subsequently, in Q2 and Q3 2022, the payables turnover decreased significantly to 7.36 and 6.54, respectively. This decline could suggest that the company was taking longer to pay its suppliers during these periods, which may have implications for its supplier relationships and overall liquidity.

In Q4 2022 and Q1 2023, the payables turnover increased again to 7.87 and 18.23, respectively, indicating improvements in managing accounts payable efficiency. However, the ratio decreased in Q2 and Q3 2023 to 17.26 and 9.43, respectively, showing some inconsistency in the company's payables turnover efficiency.

Overall, while the payables turnover ratio can provide insights into how efficiently a company is managing its accounts payable, it is essential to consider the reasons behind the fluctuations to gain a more comprehensive understanding of Halozyme Therapeutics Inc.'s financial performance.