Ichor Holdings Ltd (ICHR)

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	811,687	883,582	1,005,422	1,122,553	1,183,063	1,170,085	1,089,601	1,042,788	1,006,052	966,206	940,330	896,037	864,586	817,368	753,638	678,436	599,403	551,316	564,705	651,673
Payables	US$ in thousands	60,490	74,011	63,868	68,030	110,165	141,914	147,650	142,866	159,727	137,970	149,844	140,669	116,664	107,648	118,278	119,076	131,578	86,963	59,832	64,691
Payables turnover		13.42	11.94	15.74	16.50	10.74	8.25	7.38	7.30	6.30	7.00	6.28	6.37	7.41	7.59	6.37	5.70	4.56	6.34	9.44	10.07

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $811,687K ÷ $60,490K
= 13.42

Ichor Holdings Ltd's payables turnover has shown fluctuations over the past few quarters. The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently within a given period.

Looking at the data provided, there is an increasing trend in payables turnover from the end of 2019 through the middle of 2023, with some fluctuations along the way. The ratio ranges from 4.56 to 16.50, with the highest value achieved in March 2023. This suggests that Ichor Holdings Ltd has been effectively managing its accounts payable by converting them into cash or clearing them quicker over time.

The most recent data point in December 2023, with a payables turnover of 13.42, indicates that the company is still maintaining a relatively high turnover rate, suggesting efficient management of its payables. Further analysis of the trend and comparison with industry peers would provide a more comprehensive understanding of the company's payables management efficiency.