Masimo Corporation (MASI)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,718,600	1,634,400	430,753	400,744	308,665
Payables	US$ in thousands	251,500	276,800	75,600	64,061	54,548
Payables turnover		6.83	5.90	5.70	6.26	5.66

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,718,600K ÷ $251,500K
= 6.83

Masimo Corporation's payables turnover has exhibited a generally increasing trend from 2019 to 2023, indicating an improvement in the company's ability to efficiently manage its accounts payable. The payables turnover ratio increased from 5.66 in 2019 to 6.83 in 2023. This suggests that Masimo has been able to pay off its trade payables more frequently relative to its cost of goods sold. A higher payables turnover ratio can imply stronger supplier relationships, negotiating power, and effective cash management practices within the organization. Overall, the increasing trend in Masimo's payables turnover ratio reflects a positive aspect of its financial performance and operational efficiency over the years.