Merit Medical Systems Inc (MMSI)

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	1,103,827	1,073,698	1,058,857	1,034,469	1,025,208	1,015,554	1,000,592	1,007,710	986,060	997,267	1,000,960	974,237	980,981	995,421	990,265	991,374	980,668	931,139	884,247	849,550
Payables	US$ in thousands	65,944	48,862	61,761	65,588	68,504	63,206	59,441	58,099	55,624	51,077	53,809	52,986	49,837	46,634	44,444	56,012	54,623	52,387	52,601	51,680
Payables turnover		16.74	21.97	17.14	15.77	14.97	16.07	16.83	17.34	17.73	19.52	18.60	18.39	19.68	21.35	22.28	17.70	17.95	17.77	16.81	16.44

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,103,827K ÷ $65,944K
= 16.74

The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Analyzing the payables turnover for Merit Medical Systems, Inc. over the past eight quarters shows fluctuations in the ratio. In Q3 2023, the payables turnover ratio was the highest at 13.47, indicating that the company was paying its suppliers more frequently during that period. This was an improvement compared to the previous quarter, Q2 2023, which had a ratio of 10.43.

Overall, Merit Medical Systems, Inc. has shown relatively stable payables turnover ratios ranging from 9.22 to 13.47 over the past two years. This could suggest consistent management of accounts payable and supplier relationships. However, it is important to consider industry norms and specific company strategies when interpreting these ratios to assess the company's efficiency in managing its payables.