Envista Holdings Corp (NVST)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,126,000 | 1,094,300 | 1,082,400 | 874,300 | 935,600 |
| Payables | US$ in thousands | 179,500 | 228,300 | 185,800 | 235,100 | 208,000 |
| Payables turnover | 6.27 | 4.79 | 5.83 | 3.72 | 4.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,126,000K ÷ $179,500K
= 6.27
The payables turnover for Envista Holdings Corp has shown fluctuations over the past five years, ranging from a low of 4.78 in 2020 to a high of 6.27 in 2023. This ratio indicates the number of times a company pays off its accounts payable during a specific period. A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly.
Envista's payables turnover has generally been above 5, indicating that the company has been effectively managing its accounts payable by paying them off in a timely manner. The increase in the ratio from 2022 to 2023 could suggest that the company has improved its efficiency in paying off its suppliers.
Overall, Envista Holdings Corp's payables turnover shows a positive trend, reflecting efficient management of accounts payable and good relationships with suppliers. It is important for investors and stakeholders to monitor this ratio as it can provide insights into the company's liquidity, operational efficiency, and relationships with its suppliers.
Peer comparison
Dec 31, 2023