Lantheus Holdings Inc (LNTH)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,039,700	622,241	495,443	342,810	289,036
Payables	US$ in thousands	41,189	20,563	20,787	16,284	18,608
Payables turnover		25.24	30.26	23.83	21.05	15.53

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,039,700K ÷ $41,189K
= 25.24

The payables turnover ratio for Lantheus Holdings Inc has fluctuated over the past five years, indicating varying levels of efficiency in managing its accounts payable. In 2023, the company's payables turnover ratio was 14.25, which suggests that it paid its suppliers approximately 14.25 times during the year. This is a decrease from 2022 when the ratio was 17.18.

The decrease in payables turnover from 2022 to 2023 may indicate that Lantheus Holdings Inc took longer to pay its suppliers in 2023 compared to the previous year. However, it is important to note that a higher payables turnover ratio does not always indicate better performance, as it could also mean that the company is aggressively negotiating longer payment terms with its suppliers.

Comparing the current ratio to previous years, the payables turnover was higher in 2022 and 2020 compared to 2021 and 2019. This could imply that in those years, the company was more efficient in managing its accounts payable and paying its suppliers promptly. Overall, analyzing the payables turnover ratio provides insight into Lantheus Holdings Inc's payment practices and working capital management.