LeMaitre Vascular Inc (LMAT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	152,513	128,204	115,893	96,592	94,210
Payables	US$ in thousands	3,734	2,903	2,340	2,394	2,604
Payables turnover		40.84	44.16	49.53	40.35	36.18

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $152,513K ÷ $3,734K
= 40.84

The payables turnover ratio for Lemaitre Vascular Inc has shown a fluctuating trend over the past five years. The ratio indicates the efficiency with which the company is managing its outstanding payments to suppliers. A higher payables turnover ratio is generally considered favorable as it suggests that the company is paying off its suppliers quickly.

In 2023, the payables turnover ratio decreased to 17.79 from 19.55 in 2022. This decline could imply that Lemaitre Vascular Inc took longer to settle its payables in 2023 compared to the previous year. The decrease in the ratio may be a result of various factors such as changes in payment terms with suppliers or a slowdown in inventory turnover.

Comparing the data over the five-year period, it is worth noting that the payables turnover ratio peaked in 2021 at 22.67 before decreasing in 2022 and 2023. This peak in 2021 suggests that Lemaitre Vascular Inc was more efficient in managing its payables that year, possibly indicating strong supplier relationships or effective working capital management.

Overall, the fluctuating trend in the payables turnover ratio for Lemaitre Vascular Inc highlights the importance of closely monitoring payment practices and relationships with suppliers to ensure optimal working capital management and operational efficiency.