Pacira Pharmaceuticals Inc (PCRX)

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	184,669	198,893	209,821	212,241	199,295	176,386	160,359	144,980	140,255	136,546	131,888	118,945	117,328	113,934	106,245	109,141	106,712	98,787	95,548	91,263
Payables	US$ in thousands	15,698	16,511	24,206	17,261	15,220	12,933	13,983	14,843	10,543	7,895	12,179	9,110	10,431	13,008	9,160	15,850	12,799	16,064	13,347	13,369
Payables turnover		11.76	12.05	8.67	12.30	13.09	13.64	11.47	9.77	13.30	17.30	10.83	13.06	11.25	8.76	11.60	6.89	8.34	6.15	7.16	6.83

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $184,669K ÷ $15,698K
= 11.76

Pacira BioSciences Inc's payables turnover has exhibited some variability over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by calculating how many times the company pays off its average accounts payable balance over a specific period.

Looking at the data provided, we can see that the payables turnover ratio has fluctuated between a low of 8.67 in Q2 2023 and a high of 13.64 in Q3 2022. Overall, the trend appears to show some inconsistency with periods of both improvement and decline.

A higher payables turnover ratio signifies that the company is paying off its suppliers more quickly, which can be an indication of strong liquidity management. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling cash flow issues or strained supplier relationships.

It is essential to further investigate the reasons behind the fluctuating payables turnover ratios to determine if there are any significant changes in the company's payment terms, supplier relationships, or operational efficiency. This analysis can provide valuable insights into Pacira BioSciences Inc's financial management practices and overall financial health.