Masimo Corporation (MASI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,145,400 | 1,718,600 | 1,634,400 | 430,753 | 400,744 |
| Payables | US$ in thousands | 252,800 | 251,500 | 276,800 | 75,600 | 64,061 |
| Payables turnover | 8.49 | 6.83 | 5.90 | 5.70 | 6.26 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,145,400K ÷ $252,800K
= 8.49
Masimo Corporation's payables turnover ratio has shown a fluctuating trend over the years. The ratio decreased from 6.26 in 2020 to 5.70 in 2021, indicating a longer time taken to pay off its suppliers. However, there was a slight improvement in 2022 with the ratio increasing to 5.90 before further increasing to 6.83 in 2023 and significantly rising to 8.49 in 2024.
A higher payables turnover ratio typically indicates that a company is paying its suppliers more quickly, which can be seen as a positive sign of efficient working capital management. Masimo Corporation's increasing payables turnover ratio suggests a potential improvement in its ability to manage and settle its payables in a timely manner over the years, which can lead to better relationships with suppliers and potentially lower financing costs.
Peer comparison
Dec 31, 2024