Myriad Genetics Inc (MYGN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Jun 30, 2020	Jun 30, 2019
Cost of revenue	US$ in thousands	747,600	584,300	614,100	681,800	628,500
Payables	US$ in thousands	25,800	28,800	29,600	21,700	33,300
Payables turnover		28.98	20.29	20.75	31.42	18.87

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $747,600K ÷ $25,800K
= 28.98

The payables turnover ratio measures how efficiently a company manages its trade payables by evaluating how many times during a period the company pays off its suppliers. A higher payables turnover ratio typically indicates that the company is paying its suppliers more frequently, which can be viewed positively as it suggests effective cash management and good relationships with suppliers.

Analyzing the payables turnover ratio of Myriad Genetics, Inc. over the past five periods reveals a fluctuating trend. As of December 31, 2023, the payables turnover ratio stood at 9.16, showing an increase from the previous year. This indicates that the company is paying its suppliers approximately 9.16 times a year, suggesting efficient management of its payables.

In comparison, the payables turnover ratio was 7.01 as of December 31, 2022, and 6.68 as of December 31, 2021. This sequential rise in the ratio indicates an improvement in how quickly the company is settling its payables over these periods.

Looking back further, on June 30, 2020, the payables turnover ratio was 8.58, demonstrating a temporarily higher rate of payments to suppliers compared to the previous periods. Moreover, on June 30, 2019, the ratio stood at 6.04, indicating that the payment frequency to suppliers had increased since then.

In conclusion, Myriad Genetics, Inc. has shown a general upward trend in its payables turnover ratio over the past five periods, with occasional fluctuations. This suggests that the company has been effectively managing its trade payables and maintaining good relationships with its suppliers by timely settling its obligations.