Merit Medical Systems Inc (MMSI)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 1,182,567 1,152,169 1,128,443 1,124,014 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
Payables US$ in thousands 68,502 60,808 55,573 48,377 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
Payables turnover 17.26 18.95 20.31 23.23 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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,182,567K ÷ $68,502K
= 17.26

The payables turnover ratio for Merit Medical Systems Inc has fluctuated over the given period, ranging from a low of 14.97 to a high of 23.23. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a certain period.

A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which can indicate strong liquidity and good management of working capital. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, possibly due to cash flow constraints or negotiation strategies.

Analyzing the trend of the payables turnover ratio for Merit Medical Systems Inc, we observe some variability, with a general decrease in the ratio from mid-2022 to mid-2023, followed by an increase towards the end of 2023 and into 2024. This fluctuation could be due to various factors such as changes in payment terms with suppliers, changes in the company's financial position, or shifts in business operations.

Further analysis and comparison with industry benchmarks would provide more insights into how effectively Merit Medical Systems Inc is managing its payables and its overall financial health.