IPG Photonics Corporation (IPGP)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	745,741	874,134	764,462	661,728	708,372
Payables	US$ in thousands	28,618	46,233	55,839	25,748	27,329
Payables turnover		26.06	18.91	13.69	25.70	25.92

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $745,741K ÷ $28,618K
= 26.06

The payables turnover ratio measures how quickly a company is paying its suppliers. It is calculated by dividing the cost of goods sold by the average accounts payable for a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Based on the data provided for IPG Photonics Corp, the payables turnover ratio has fluctuated over the past five years. In 2023, the payables turnover ratio increased to 26.06 compared to 18.91 in 2022 and 13.69 in 2021. This significant improvement suggests that the company is paying its suppliers more efficiently.

However, when compared to the ratios from 2020 (25.70) and 2019 (25.92), the 2023 ratio is slightly higher, indicating that the company may be taking longer to pay its suppliers than in those previous years.

In summary, the trend in IPG Photonics Corp's payables turnover ratio shows variations year over year, with 2023 showing an improvement in the efficiency of paying suppliers compared to the previous year, but still slightly higher when compared to two years prior. Further analysis and comparisons with industry benchmarks may help provide additional insights into the company's payables management performance.