Hims Hers Health Inc (HIMS)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 303,379 | 157,051 | 118,194 | 67,384 | 39,307 |
| Payables | US$ in thousands | 91,180 | 43,070 | 32,363 | 19,640 | 8,066 |
| Payables turnover | 3.33 | 3.65 | 3.65 | 3.43 | 4.87 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $303,379K ÷ $91,180K
= 3.33
The payables turnover ratio for Hims Hers Health Inc has shown a decreasing trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 4.87 in 2020 to 3.33 in 2024.
A decreasing payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could signal potential liquidity issues or strained supplier relationships. It is essential for the company to assess and improve its payables management to ensure timely payments and maintain healthy supplier relationships.
Furthermore, a low payables turnover ratio may also imply inefficiencies in the company's working capital management. It is crucial for Hims Hers Health Inc to analyze its payables turnover in conjunction with other financial ratios to get a comprehensive view of its financial health and make informed decisions for future operations.
Peer comparison
Dec 31, 2024