Intuitive Surgical Inc (ISRG)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,874,600 | 4,378,700 | 3,793,900 | 3,245,500 | 2,763,300 |
| Payables | US$ in thousands | 193,400 | 188,700 | 147,000 | 121,200 | 81,600 |
| Payables turnover | 25.20 | 23.20 | 25.81 | 26.78 | 33.86 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,874,600K ÷ $193,400K
= 25.20
The payables turnover ratio for Intuitive Surgical Inc has shown a declining trend over the past five years, decreasing from 33.86 in December 2020 to 25.20 in December 2024. This indicates that the company is taking longer to pay its suppliers over time.
A higher payables turnover ratio is generally preferable as it suggests that a company is paying its suppliers more quickly, which can improve relationships and potentially allow for discounts. Conversely, a decreasing payables turnover ratio may signal potential liquidity issues or inefficiencies in managing payables.
It is important for Intuitive Surgical Inc to monitor its payables turnover ratio closely and assess the reasons behind the trend to ensure efficient cash flow management and effective supplier relationships in the long term.
Peer comparison
Dec 31, 2024