Illumina Inc (ILMN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,511,000 | 1,760,000 | 1,612,000 | 1,372,000 | 1,036,000 |
| Payables | US$ in thousands | 221,000 | 245,000 | 293,000 | 332,000 | 192,000 |
| Payables turnover | 6.84 | 7.18 | 5.50 | 4.13 | 5.40 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,511,000K ÷ $221,000K
= 6.84
The payables turnover ratio of Illumina Inc has been fluctuating over the past five years. In December 2020, the payables turnover ratio was 5.40, indicating that the company paid its suppliers approximately 5.40 times during the year. This ratio decreased to 4.13 by December 2021, signaling a slowdown in the rate at which Illumina paid its outstanding invoices.
However, there was a notable improvement in the payables turnover ratio by December 2022, reaching 5.50, suggesting that the company managed to expedite its payments to suppliers. This improvement continued into December 2023, with the ratio further increasing to 7.18, indicating that Illumina was more efficient in managing its accounts payable.
By December 2024, the payables turnover ratio slightly decreased to 6.84 but remained at a relatively high level compared to previous years. Overall, the trend in Illumina's payables turnover ratio reflects fluctuations in the company's payment practices and efficiency in managing its accounts payable during the period under consideration.
Peer comparison
Dec 31, 2024