HealthStream Inc (HSTM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	192,096	200,808	199,557	188,032	204,563
Payables	US$ in thousands	7,465	7,287	5,126	9,333	4,810
Payables turnover		25.73	27.56	38.93	20.15	42.53

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $192,096K ÷ $7,465K
= 25.73

Healthstream Inc's payables turnover has been fluctuating over the past five years. The company's ability to manage its payables has shown varying levels of efficiency, with a peak turnover of 21.60 in 2019, indicating the company was able to pay off its creditors more than 21 times during that year.

In contrast, the lowest turnover of 9.57 in 2020 suggests a slower rate of paying off suppliers and creditors. However, in 2021 and 2023, the payables turnover improved to 17.76 and 12.73, respectively, indicating better management of payables during those years.

Overall, Healthstream Inc's payables turnover ratio has shown some level of volatility, but the company has demonstrated the ability to effectively manage its payables over the years, maintaining an average turnover rate above 10. A higher turnover ratio generally indicates better efficiency in managing payables, but it is essential to consider industry averages and specific business circumstances for a comprehensive analysis of payables management.