Intuitive Surgical Inc (ISRG)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,378,700	3,793,900	3,245,500	2,763,300	2,589,700
Payables	US$ in thousands	188,700	147,000	121,200	81,600	123,500
Payables turnover		23.20	25.81	26.78	33.86	20.97

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,378,700K ÷ $188,700K
= 23.20

Intuitive Surgical Inc's payables turnover has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the purchases made on credit with the average accounts payable during a specific period.

In 2023, the payables turnover ratio decreased to 12.69 compared to the previous year's ratio of 13.78. This suggests that Intuitive Surgical took longer to pay its suppliers in 2023 than in 2022. A lower payables turnover ratio may indicate a less efficient use of trade credit or potentially strained relationships with suppliers.

In 2021, the company experienced a slight decline in the payables turnover ratio to 14.45 from 18.35 in 2020, indicating a longer payment cycle compared to the previous year. However, in 2020, Intuitive Surgical had a high payables turnover ratio of 18.35, suggesting the company was paying its suppliers more frequently within the year.

The lowest payables turnover ratio in the past five years was in 2019 at 11.08. This indicated that the company took longer to pay its suppliers in 2019 compared to the other years analyzed.

Overall, the trend in the payables turnover ratio for Intuitive Surgical Inc has shown some variability, with fluctuations suggesting changes in the company's payment practices and relationships with suppliers. Further analysis would be needed to understand the specific reasons behind these fluctuations and their implications for the company's financial operations.