Hologic Inc (HOLX)
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 | 1,948,200 | 1,958,900 | 1,952,400 | 1,788,400 | 1,836,800 | 1,865,300 | 1,915,300 | 1,929,100 | 1,891,800 | 1,836,400 | 1,763,100 | 1,653,200 | 1,561,700 | 1,549,000 | 1,750,100 | 1,800,900 | 2,216,600 | 2,196,500 | 1,972,600 | 1,953,000 |
| Payables | US$ in thousands | 183,800 | 175,200 | 180,600 | 187,400 | 201,800 | 197,700 | 216,600 | 224,800 | 202,200 | 215,900 | 208,400 | 225,100 | 184,300 | 178,800 | 127,300 | 134,400 | 123,700 | 186,500 | 161,500 | 165,200 |
| Payables turnover | 10.60 | 11.18 | 10.81 | 9.54 | 9.10 | 9.44 | 8.84 | 8.58 | 9.36 | 8.51 | 8.46 | 7.34 | 8.47 | 8.66 | 13.75 | 13.40 | 17.92 | 11.78 | 12.21 | 11.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,948,200K ÷ $183,800K
= 10.60
The payables turnover ratio for Hologic Inc has shown some variability over the past few quarters, ranging from a low of 7.34 in the first quarter of 2021 to a high of 17.92 in the first quarter of 2020. The ratio measures the company's efficiency in paying its suppliers or creditors. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
Overall, the trend for Hologic Inc's payables turnover ratio appears to be fluctuating, with some quarters showing improvements and others experiencing slight declines. It is important for the company to strike a balance in managing its payables turnover, as excessively high ratios may indicate potential issues with supplier relationships, while excessively low ratios may suggest inefficiencies in managing working capital.
Further analysis and deeper insight into the company's procurement and payment processes, as well as industry benchmarks, would be beneficial in fully understanding the implications of Hologic Inc's payables turnover ratio.
Peer comparison
Dec 31, 2023