Innoviva Inc (INVA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	120,016	69,138	16,187	13,883	14,656
Payables	US$ in thousands	6,717	2,939	27	66	10
Payables turnover		17.87	23.52	599.52	210.35	1,465.60

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $120,016K ÷ $6,717K
= 17.87

The payables turnover for Innoviva Inc has shown a significant improvement over the past five years. In 2023, the payables turnover ratio was 6.35, indicating that the company's payables turnover has increased, which means Innoviva is paying off its accounts payable more frequently during the year compared to previous years. This could signify efficient management of accounts payable and potentially better relationships with suppliers.

However, it is noted that in the earlier years, specifically in 2021, 2020, and 2019, the payables turnover was reported as 0.00, suggesting that either the company did not have any accounts payable to turn over during those years or there might have been a data reporting issue.

Overall, the upward trend in the payables turnover ratio for Innoviva Inc is a positive sign of effective working capital management and creditor relationships. It is essential for the company to sustain and potentially improve this trend to ensure continued operational efficiency and financial health.