NeoGenomics Inc (NEO)

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	708,318	700,255	689,851	676,068	580,764	800,621	705,252	609,348	604,370	502,898	500,176	490,413	476,115	442,645	425,106	418,882	407,683	324,442	307,377	291,846
Payables	US$ in thousands	20,334	16,819	17,913	22,712	20,510	13,708	16,849	20,481	17,921	28,536	23,056	18,919	24,965	17,735	19,198	20,453	19,568	17,995	16,326	16,514
Payables turnover		34.83	41.63	38.51	29.77	28.32	58.41	41.86	29.75	33.72	17.62	21.69	25.92	19.07	24.96	22.14	20.48	20.83	18.03	18.83	17.67

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $708,318K ÷ $20,334K
= 34.83

Neogenomics Inc.'s payables turnover ratio fluctuated over the past eight quarters, with a high of 23.38 in Q3 2022 and a low of 14.32 in Q1 2023. The payables turnover ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable during a period.

A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could signal strong supplier relationships and efficient working capital management. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers, potentially impacting relationships and cash flow.

The trend in Neogenomics Inc.'s payables turnover ratio shows some variability but generally remains within a reasonable range. Further analysis would be needed to determine the underlying reasons for the fluctuations and whether they are a cause for concern or indicative of strategic financial management.