Hims Hers Health Inc (HIMS)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 234,342 | 190,063 | 168,782 | 157,051 | 149,356 | 140,348 | 128,981 | 118,194 | 105,929 | 94,847 | 81,875 | 67,384 | 54,357 | 45,103 | 41,930 | 39,307 | 29,977 | 20,380 | 10,155 | |
| Payables | US$ in thousands | 75,444 | 57,099 | 43,919 | 43,070 | 42,001 | 38,267 | 37,609 | 32,363 | 32,972 | 27,093 | 23,906 | 19,640 | 16,094 | 15,564 | 13,233 | 8,066 | 25 | 22 | 75 | 18 |
| Payables turnover | 3.11 | 3.33 | 3.84 | 3.65 | 3.56 | 3.67 | 3.43 | 3.65 | 3.21 | 3.50 | 3.42 | 3.43 | 3.38 | 2.90 | 3.17 | 4.87 | 1,199.08 | 926.36 | 135.40 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $234,342K ÷ $75,444K
= 3.11
The payables turnover ratio for Hims Hers Health Inc has shown fluctuations over the past few quarters. Overall, the trend indicates that the company takes approximately 3 to 4 times to pay off its accounts payable annually.
There was a significant anomaly in the payables turnover ratio for the quarter ended December 31, 2019, where the ratio was abnormally high at 1,199.08. This exceptionally high figure may be due to irregularities in the financial data or potentially non-typical business activities during that period. It is advisable to investigate the reason behind this outlier to ensure the accuracy and reliability of the financial information.
The company's payables turnover improved in the following periods, staying within the range of 3 to 4 times. This consistency suggests that Hims Hers Health Inc has been effectively managing its accounts payable, maintaining a steady payment cycle with its suppliers.
Overall, a payables turnover ratio within the range observed for Hims Hers Health Inc indicates that the company is maintaining a balanced relationship with its creditors by managing its accounts payable efficiently and meeting its payment obligations in a timely manner.