ICU Medical Inc (ICUI)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,519,250	1,582,240	824,818	809,507	794,344
Payables	US$ in thousands	150,030	215,902	81,128	71,864	128,629
Payables turnover		10.13	7.33	10.17	11.26	6.18

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,519,250K ÷ $150,030K
= 10.13

The payables turnover ratio measures how efficiently a company manages its accounts payable by indicating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which may suggest good liquidity and efficient use of working capital.

For ICU Medical, Inc., the payables turnover ratios have fluctuated over the past five years. In 2023, the payables turnover ratio was 10.13, showing an increase from 7.33 in 2022 and 10.17 in 2021. This suggests that ICU Medical, Inc. paid its suppliers more frequently in 2023 compared to previous years.

Comparatively, in 2020 and 2019, the payables turnover ratios were 11.26 and 6.18, respectively. The higher ratio in 2020 indicates even more frequent payments to suppliers, while the lower ratio in 2019 suggests less frequent payments.

Overall, the increasing trend in payables turnover ratios for ICU Medical, Inc. from 2019 to 2023 indicates improved efficiency in managing accounts payable and a potentially stronger relationship with suppliers. It may signify effective working capital management and liquidity for the company.