Envista Holdings Corp (NVST)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,627,000 | 1,126,000 | 1,094,300 | 1,082,400 | 874,300 |
| Payables | US$ in thousands | 174,600 | 179,500 | 228,300 | 185,800 | 235,100 |
| Payables turnover | 20.77 | 6.27 | 4.79 | 5.83 | 3.72 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,627,000K ÷ $174,600K
= 20.77
The payables turnover ratio for Envista Holdings Corp has shown a positive trend over the years, indicating the company's ability to efficiently manage its accounts payable. Starting at 3.72 in December 31, 2020, the ratio has steadily increased to 5.83 in December 31, 2021, 4.79 in December 31, 2022, and further to 6.27 in December 31, 2023. The significant jump to 20.77 by December 31, 2024, suggests a substantial improvement in the company's ability to pay off its suppliers or trade payables within a given period.
A higher payables turnover ratio reflects that Envista Holdings Corp is paying off its suppliers at a faster rate compared to previous years, which could be a positive indication of the company's strong liquidity position and effective management of working capital. However, a very high payables turnover ratio, like the one seen in December 31, 2024, may also raise concerns about the company's relationship with its suppliers or its ability to negotiate favorable credit terms.
Overall, the increasing trend in payables turnover ratio for Envista Holdings Corp signifies improved efficiency in managing its payables, but further analysis considering industry norms and the company's specific circumstances would provide a more comprehensive assessment of its financial performance.
Peer comparison
Dec 31, 2024