Illumina Inc (ILMN)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,511,000 | 1,583,000 | 1,683,000 | 1,736,000 | 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 |
| Payables | US$ in thousands | 221,000 | 191,000 | 199,000 | 201,000 | 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 |
| Payables turnover | 6.84 | 8.29 | 8.46 | 8.64 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,511,000K ÷ $221,000K
= 6.84
The payables turnover ratio of Illumina Inc has shown varying trends over the observed periods. The ratio decreased from 8.11 on March 31, 2020, to 5.40 on December 31, 2021, indicating a possible lengthening of the time it takes for Illumina to pay off its trade payables.
Between March 31, 2020, and March 31, 2024, the payables turnover ratio fluctuated within the range of 4.14 and 8.64. Generally, a higher payables turnover ratio is considered more favorable as it suggests the company is efficiently managing its accounts payable by paying suppliers more frequently.
The highest payables turnover ratio of 8.64 was observed on March 31, 2024, which may indicate that Illumina improved its payables management, possibly negotiating better payment terms with its suppliers or optimizing its working capital efficiency.
On the other hand, the lowest ratio of 4.14 was recorded on December 31, 2021, suggesting a potential concern as it implies a longer period to settle payables.
Overall, fluctuations in the payables turnover ratio should be further assessed in conjunction with other financial metrics to get a comprehensive understanding of Illumina's liquidity management and working capital efficiency.
Peer comparison
Dec 31, 2024