IDEXX Laboratories Inc (IDXX)

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	1,470,983	1,439,190	1,406,680	1,382,414	1,362,986	1,364,014	1,366,479	1,356,799	1,325,928	1,292,695	1,254,378	1,175,794	1,135,615	1,098,476	1,059,646	1,063,646	1,041,359	1,016,087	995,539	981,602
Payables	US$ in thousands	110,643	112,609	107,664	117,709	110,221	110,144	127,262	120,881	116,140	86,684	93,016	87,175	74,558	71,933	73,903	74,210	72,172	75,515	67,606	70,143
Payables turnover		13.29	12.78	13.07	11.74	12.37	12.38	10.74	11.22	11.42	14.91	13.49	13.49	15.23	15.27	14.34	14.33	14.43	13.46	14.73	13.99

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,470,983K ÷ $110,643K
= 13.29

The payables turnover ratio for Idexx Laboratories, Inc. has been relatively stable over recent quarters, ranging from 10.74 to 13.29. This ratio measures how efficiently the company is managing its accounts payable by indicating how many times during a period the company pays off its suppliers.

The average payables turnover for the last four quarters is calculated as follows:

(13.29 + 12.78 + 13.07 + 11.74) / 4 = 12.47

This indicates that, on average, Idexx Laboratories, Inc. pays its suppliers approximately 12.47 times a year. A higher payables turnover ratio is generally seen as favorable, as it suggests that the company is paying its suppliers more frequently, which can indicate strong liquidity and efficient working capital management.

Overall, with a payables turnover consistently above 10, Idexx Laboratories, Inc. appears to have a good relationship with its suppliers and is efficiently managing its accounts payable. It may be a sign of effective cash flow management and could contribute to maintaining good supplier relationships.