IPG Photonics Corporation (IPGP)

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	745,741	833,730	863,813	876,212	874,134	799,881	794,575	781,026	764,462	755,751	728,124	696,956	661,728	654,401	665,032	688,602	708,372	689,251	674,133	669,239
Payables	US$ in thousands	28,618	33,126	37,418	40,902	46,233	55,072	57,276	46,481	55,839	52,428	50,714	44,704	25,748	37,375	42,261	39,648	27,329	30,466	38,016	39,970
Payables turnover		26.06	25.17	23.09	21.42	18.91	14.52	13.87	16.80	13.69	14.42	14.36	15.59	25.70	17.51	15.74	17.37	25.92	22.62	17.73	16.74

December 31, 2023 calculation

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

The payables turnover ratio of IPG Photonics Corp has shown a consistently increasing trend over the past eight quarters. The ratio has improved from 16.80 in Q1 2022 to 26.06 in Q4 2023, indicating that the company is managing its trade payables more efficiently.

A higher payables turnover ratio suggests that IPG Photonics Corp is able to pay off its suppliers more quickly, which can be a positive sign of strong liquidity management and good supplier relationships. It also indicates that the company is efficiently utilizing its working capital.

The steady increase in the payables turnover ratio over the period indicates that IPG Photonics Corp has been able to strengthen its cash flow management and optimize its payables cycle. This trend may be a result of improved negotiation with suppliers, better inventory management, or other operational efficiencies within the company.

Overall, the rising payables turnover ratio for IPG Photonics Corp suggests that the company is effectively managing its trade payables, which can positively impact its overall financial health and operational performance.