Ichor Holdings Ltd (ICHR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	821,635	1,191,880	1,011,290	870,204	603,612
Payables	US$ in thousands	60,490	110,165	159,727	116,664	131,578
Payables turnover		13.58	10.82	6.33	7.46	4.59

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $821,635K ÷ $60,490K
= 13.58

Ichor Holdings Ltd's payables turnover has shown a consistent upward trend over the last five years, indicating an improvement in the management of its accounts payable. The payables turnover ratio has increased from 4.59 in 2019 to 13.58 in 2023, showing that the company is now able to pay off its suppliers more frequently within a given period.

This improvement suggests that Ichor Holdings Ltd is managing its trade payables more efficiently and may be benefitting from better terms with suppliers or streamlining its supply chain processes. A higher payables turnover ratio generally reflects a more efficient use of working capital and can indicate stronger liquidity and financial health for the company.

Overall, the increasing trend in payables turnover for Ichor Holdings Ltd is a positive sign of effective management of trade credit obligations and potential improvements in cash flow management.