Illumina Inc (ILMN)
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 | 1,759,000 | 1,722,000 | 1,685,000 | 1,636,000 | 1,612,000 | 1,583,000 | 1,523,000 | 1,452,000 | 1,373,000 | 1,314,000 | 1,244,000 | 1,125,000 | 1,036,000 | 1,003,000 | 994,000 | 1,054,000 | 1,076,000 | 1,063,000 | 1,060,000 | 1,050,000 |
| Payables | US$ in thousands | 245,000 | 240,000 | 244,000 | 242,000 | 293,000 | 281,000 | 282,000 | 291,000 | 332,000 | 248,000 | 200,000 | 178,000 | 192,000 | 156,000 | 135,000 | 130,000 | 149,000 | 143,000 | 139,000 | 137,000 |
| Payables turnover | 7.18 | 7.18 | 6.91 | 6.76 | 5.50 | 5.63 | 5.40 | 4.99 | 4.14 | 5.30 | 6.22 | 6.32 | 5.40 | 6.43 | 7.36 | 8.11 | 7.22 | 7.43 | 7.63 | 7.66 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,759,000K ÷ $245,000K
= 7.18
The payables turnover ratio for Illumina Inc has been consistently increasing over the past eight quarters, indicating an improvement in the company's efficiency in managing its accounts payable.
In Q4 2023, the payables turnover ratio reached 6.40, the highest among the quarters provided. This suggests that Illumina is taking less time to pay off its suppliers compared to previous quarters.
The company's ability to manage its payables effectively is crucial in maintaining good relationships with suppliers while optimizing cash flow. A higher payables turnover ratio indicates that Illumina is effectively utilizing its suppliers' credit terms and is potentially benefiting from early payment discounts.
Overall, the increasing trend in payables turnover reflects positively on Illumina's financial health and operational efficiency in managing its accounts payable.
Peer comparison
Dec 31, 2023