Materion Corporation (MTRN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,503,030 | 1,610,150 | 1,407,620 | 1,158,240 | 1,103,760 |
| Payables | US$ in thousands | 125,663 | 107,899 | 86,243 | 55,640 | 43,206 |
| Payables turnover | 11.96 | 14.92 | 16.32 | 20.82 | 25.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,503,030K ÷ $125,663K
= 11.96
Materion Corp's payables turnover ratio has been decreasing over the past five years, indicating a lengthening of the company's payment period to its suppliers. The ratio dropped from 21.44 in 2019 to 10.47 in 2023. This trend suggests that Materion Corp is taking longer to pay its suppliers relative to its purchases of goods and services. A decreasing payables turnover ratio could be a signal of potential financial stress or liquidity issues within the company. Further analysis of the company's cash flow, working capital management, and supplier relationships may provide more insights into the reasons behind this trend and its potential impact on Materion Corp's overall financial health.