Integra LifeSciences Holdings (IART)

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	1,387,983	1,353,185	1,320,159	1,290,343	1,277,573	1,298,051	1,306,436	1,312,094	1,314,932	968,259	956,898	868,540	838,523	1,161,829	1,189,389	1,279,783	1,279,910	1,278,812	1,279,890	1,279,285
Payables	US$ in thousands	92,326	93,550	99,766	112,785	102,100	80,732	69,498	88,371	61,837	59,600	65,512	61,500	54,608	50,254	58,291	97,061	113,090	94,158	107,191	100,553
Payables turnover		15.03	14.46	13.23	11.44	12.51	16.08	18.80	14.85	21.26	16.25	14.61	14.12	15.36	23.12	20.40	13.19	11.32	13.58	11.94	12.72

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,387,983K ÷ $92,326K
= 15.03

Integra Lifesciences Holdings Corp's payables turnover ratio has shown some fluctuations over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times its payables are paid off in a given period.

In Q4 2023, the payables turnover ratio was 7.11, which signifies that the company paid off its suppliers approximately 7.11 times during that quarter. This was a slight increase compared to the previous quarter, indicating an improvement in the company's ability to manage its payables effectively.

Looking further back, there has been variability in the payables turnover ratio, with Q2 2022 showing the highest ratio of 8.51 and Q1 2023 showing the lowest ratio of 5.26. These fluctuations indicate changes in the company's payment practices and relationships with its suppliers over time.

Overall, a higher payables turnover ratio suggests that Integra Lifesciences Holdings Corp is efficiently managing its payables and is possibly taking advantage of credit terms to optimize its cash flow. However, it is important to consider industry benchmarks and the company's specific circumstances when interpreting this ratio in the context of its overall financial health and operational efficiency.