IDEXX Laboratories Inc (IDXX)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,470,980	1,362,990	1,325,930	1,135,620	1,041,360
Payables	US$ in thousands	110,643	110,221	116,140	74,558	72,172
Payables turnover		13.29	12.37	11.42	15.23	14.43

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,470,980K ÷ $110,643K
= 13.29

Idexx Laboratories, Inc.'s payables turnover ratio measures how efficiently the company manages its trade payables by evaluating the number of times the company pays off its suppliers during a specific period. The trend in Idexx Laboratories' payables turnover ratio over the past five years indicates a consistent and relatively stable performance in managing its payables.

From 2019 to 2020, there was a slight increase in the payables turnover ratio from 14.43 to 15.23, suggesting the company improved its efficiency in paying off its trade payables during that period. However, from 2020 to 2021, the ratio decreased to 11.42, indicating a decrease in the efficiency of managing payables turnover. This may call for a closer examination of the company's payment practices and relationships with suppliers during that period.

In 2022, there was a marginal increase in the payables turnover ratio to 12.37, reflecting a modest improvement in managing trade payables compared to the previous year. Finally, in 2023, the ratio increased to 13.29, indicating a further enhancement in the efficiency of paying off suppliers, possibly through better negotiation terms or working capital management practices.

Overall, Idexx Laboratories, Inc.'s payables turnover ratio has shown consistency over the years, with occasional fluctuations. The company's ability to effectively manage its payables turnover is essential for maintaining positive supplier relationships, optimizing working capital, and ultimately contributing to the company's financial health and stability.