Integra LifeSciences Holdings (IART)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,619,700	1,449,370	1,335,850	1,374,810	1,274,460
Payables	US$ in thousands	82,502	92,326	102,100	61,837	54,608
Payables turnover		19.63	15.70	13.08	22.23	23.34

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,619,700K ÷ $82,502K
= 19.63

To analyze Integra LifeSciences Holdings' payables turnover, we examine the trend in the payables turnover ratio over the years provided. The payables turnover ratio is calculated by dividing purchases by average accounts payable. A higher ratio indicates that the company is paying its suppliers more frequently, which can signal efficient management of payable obligations.

From the data provided, we observe that the payables turnover ratio decreased from 23.34 on December 31, 2020, to 22.23 on December 31, 2021. This decline suggests a slight decrease in the frequency of payables turnover, indicating a potential slowdown in payment to suppliers compared to the previous year.

Subsequently, the payables turnover ratio dropped significantly to 13.08 on December 31, 2022, indicating a notable decrease in the speed at which the company is paying its suppliers. This could be due to various factors such as changes in purchasing patterns or payment terms with suppliers.

However, by December 31, 2023, the payables turnover ratio increased to 15.70, showing an improvement in the company's payables management compared to the previous year. This increase indicates a more efficient management of payables and a quicker turnover of outstanding payments to suppliers.

Finally, on December 31, 2024, the payables turnover ratio further increased to 19.63, indicating a continued improvement in the management of payables. This higher ratio suggests that Integra LifeSciences Holdings is paying its suppliers more frequently, potentially strengthening its relationships with suppliers and optimizing its working capital management.

In conclusion, the analysis of the payables turnover ratio for Integra LifeSciences Holdings shows variations over the years, with fluctuations in the company's efficiency in managing its accounts payable. It is essential for stakeholders to monitor these trends to assess the company's liquidity, operational efficiency, and relationships with suppliers.