Harmonic Inc (HLIT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 458,644 | 455,790 | 385,999 | 310,831 | 306,568 |
| Payables | US$ in thousands | 38,562 | 67,455 | 64,429 | 23,543 | 40,933 |
| Payables turnover | 11.89 | 6.76 | 5.99 | 13.20 | 7.49 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $458,644K ÷ $38,562K
= 11.89
Harmonic, Inc.'s payables turnover has shown fluctuations over the past five years. In 2023, the payables turnover ratio stood at 7.66, indicating that the company converted its accounts payable into cash approximately 7.66 times during the year. This ratio has significantly increased compared to the previous year where it was 4.58.
The substantial increase in payables turnover from 2022 to 2023 suggests that Harmonic, Inc. managed its accounts payable more efficiently, possibly negotiating better terms with suppliers or making timelier payments.
However, when looking at the trend over the five-year period, the payables turnover ratio has varied, with significant fluctuations occurring. It was highest in 2020 at 7.81 and lowest in 2021 at 3.84. This inconsistency may indicate inconsistencies in managing payables and could be a point of concern for stakeholders.
Analyzing the payables turnover ratio alongside other financial metrics and industry benchmarks would provide a more comprehensive understanding of Harmonic, Inc.'s financial health and operational efficiency.
Peer comparison
Dec 31, 2023