Penumbra Inc (PEN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	375,879	311,926	272,208	222,237	175,441
Payables	US$ in thousands	27,155	26,679	13,421	14,109	15,111
Payables turnover		13.84	11.69	20.28	15.75	11.61

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $375,879K ÷ $27,155K
= 13.84

Penumbra Inc's payables turnover ratio has fluctuated over the past five years, ranging from 11.61 to 20.28. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period. In 2021, the ratio was significantly high at 20.28, suggesting that the company was managing its payables efficiently by quickly settling its obligations to suppliers. This may indicate strong liquidity management and good relationships with suppliers.

On the other hand, in 2022 and 2023, the payables turnover ratio decreased to 11.69 and 13.84, respectively. This decline could suggest that Penumbra Inc is taking longer to pay its suppliers, which may have various implications, including strained supplier relationships or potential liquidity challenges. Overall, fluctuations in the payables turnover ratio should be further investigated to understand the company's payment practices and financial health.