MaxLinear Inc (MXL)

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	307,600	378,032	434,688	469,281	470,483	449,349	431,088	408,263	396,566	402,083	392,529	332,173	265,798	187,563	135,252	141,202	149,495	157,828	160,846	167,622
Payables	US$ in thousands	21,551	45,203	45,901	54,578	68,576	90,845	73,140	60,214	52,976	63,635	53,483	39,061	32,751	50,574	17,832	13,597	13,442	13,533	16,995	13,306
Payables turnover		14.27	8.36	9.47	8.60	6.86	4.95	5.89	6.78	7.49	6.32	7.34	8.50	8.12	3.71	7.58	10.38	11.12	11.66	9.46	12.60

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $307,600K ÷ $21,551K
= 14.27

The payables turnover ratio measures how efficiently a company is managing its supplier payments. A higher ratio indicates that the company is paying its suppliers more frequently, which could suggest good working capital management.

Looking at the data for MaxLinear Inc, we can see that the payables turnover ratio has been fluctuating over the past eight quarters. In the most recent quarter, the ratio stands at 14.27, indicating a significant increase from the previous quarter's 8.36. This suggests that the company has been paying its suppliers at a much higher frequency, which could be perceived as a positive indicator of effective cash management and strong supplier relationships.

However, it's important to note that a very high payables turnover ratio could also signal that the company is stretching its payment terms with suppliers to an unsustainable level. Therefore, it's crucial to consider this ratio in conjunction with other liquidity and working capital metrics to gain a comprehensive understanding of MaxLinear Inc's financial health.