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.
Peer comparison
Dec 31, 2023