MaxLinear Inc (MXL)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	165,746	307,600	470,483	396,566	265,798
Payables	US$ in thousands	31,378	21,551	68,576	52,976	32,751
Payables turnover		5.28	14.27	6.86	7.49	8.12

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $165,746K ÷ $31,378K
= 5.28

The payables turnover ratio for MaxLinear Inc has shown a fluctuating trend over the past five years.

In December 31, 2020, the payables turnover ratio was 8.12, indicating that the company was able to convert its accounts payables approximately 8.12 times during the year. This suggests a relatively efficient management of payables.

However, the ratio decreased to 7.49 by December 31, 2021, and further dropped to 6.86 by December 31, 2022. These declines may signify a lengthening of the company's payment period to its suppliers, which could potentially strain relationships with creditors.

Interestingly, there was a significant increase in the payables turnover ratio to 14.27 by December 31, 2023. This spike indicates that the company has significantly improved its efficiency in paying off its suppliers, possibly by negotiating more favorable payment terms or better managing its working capital.

Nonetheless, by December 31, 2024, the payables turnover ratio decreased sharply to 5.28. This decline could raise concerns regarding the company's ability to manage its payables efficiently, potentially leading to cash flow challenges or strained relationships with suppliers.

Overall, fluctuations in the payables turnover ratio for MaxLinear Inc suggest varying levels of efficiency in managing its accounts payables over the five-year period. Further analysis of the reasons behind these fluctuations would provide valuable insights into the company's financial management practices.