ICU Medical Inc (ICUI)

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	1,519,253	1,506,051	1,548,121	1,584,549	1,582,236	1,392,202	1,189,010	993,747	824,818	812,360	808,734	807,681	809,507	810,313	794,589	805,907	794,344	798,699	802,362	802,609
Payables	US$ in thousands	150,030	149,288	167,054	186,420	215,902	205,042	201,874	200,991	81,128	62,008	69,782	73,049	71,864	81,027	101,127	86,348	128,629	125,355	131,190	133,542
Payables turnover		10.13	10.09	9.27	8.50	7.33	6.79	5.89	4.94	10.17	13.10	11.59	11.06	11.26	10.00	7.86	9.33	6.18	6.37	6.12	6.01

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,519,253K ÷ $150,030K
= 10.13

The payables turnover ratio for ICU Medical, Inc. has been consistently increasing over the past eight quarters. This indicates that the company is managing its accounts payable more efficiently.

The trend shows a progressive improvement in the speed at which ICU Medical is paying off its suppliers. A higher payables turnover ratio is generally indicative of strong supplier relationships and effective working capital management.

The significant increase in payables turnover from Q1 2022 to Q4 2023, doubling from 4.94 to 10.13, reflects that ICU Medical is making payments to its suppliers more frequently within a shorter timeframe. This can be seen as a positive sign indicating effective cash flow management and potentially favorable relationships with suppliers.

Overall, the upward trend in the payables turnover ratio for ICU Medical suggests that the company is efficiently managing its payables, which can have a positive impact on its liquidity and financial health.