Masimo Corporation (MASI)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,507,900 | 1,565,300 | 1,596,000 | 1,750,100 | 1,569,441 | 1,218,223 | 870,337 | 428,255 | 430,882 | 426,328 | 421,700 | 418,851 | 400,679 | 373,138 | 346,695 | 312,639 | 308,665 | 302,879 | 299,966 | 294,127 |
| Payables | US$ in thousands | 251,500 | 283,500 | 265,500 | 249,100 | 276,800 | 267,800 | 244,500 | 87,453 | 75,600 | 60,710 | 66,248 | 62,883 | 64,061 | 89,533 | 89,550 | 49,110 | 54,548 | 40,771 | 36,472 | 32,970 |
| Payables turnover | 6.00 | 5.52 | 6.01 | 7.03 | 5.67 | 4.55 | 3.56 | 4.90 | 5.70 | 7.02 | 6.37 | 6.66 | 6.25 | 4.17 | 3.87 | 6.37 | 5.66 | 7.43 | 8.22 | 8.92 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,507,900K ÷ $251,500K
= 6.00
The payables turnover ratio for Masimo Corporation has fluctuated over the past two years, ranging from a low of 3.56 to a high of 8.92. The ratio measures how many times a company pays off its accounts payable within a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
In the most recent quarter, Masimo Corporation's payables turnover ratio was 6.00, which suggests that the company is efficiently managing its accounts payable by paying suppliers approximately six times a year. This is an improvement compared to the previous quarter and the same period in the prior year.
Overall, the trend in Masimo Corporation's payables turnover ratio indicates a relatively stable and efficient management of its accounts payable. However, it is essential for the company to continue monitoring and optimizing its payables turnover to ensure healthy relationships with suppliers and effective working capital management.
Peer comparison
Dec 31, 2023