Krystal Biotech Inc (KRYS)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	113,686	98,401	77,735	40,391	15,063
Payables	US$ in thousands	4,985	4,132	3,981	8,398	2,105
Payables turnover		22.81	23.81	19.53	4.81	7.16

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $113,686K ÷ $4,985K
= 22.81

Krystal Biotech Inc's payables turnover has shown a trend of improvement over the years, increasing from 7.16 in 2020 to 22.81 in 2024. This indicates that the company is managing its accounts payable more efficiently, taking less time to pay its suppliers.

A higher payables turnover ratio generally suggests that the company is paying its suppliers more quickly, which could potentially indicate strong liquidity and good relationships with suppliers. It may also indicate effective working capital management.

However, a very high payables turnover ratio could also raise questions about the company's ability to negotiate favorable credit terms with suppliers and may even suggest potential cash flow issues if payables are being paid too rapidly.

Overall, Krystal Biotech Inc's increasing payables turnover ratio implies improving efficiency in managing its accounts payable, but the company should continue to monitor this ratio to ensure it remains at an optimal level for its operations.