Progyny Inc (PGNY)

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
Cost of revenue (ttm) US$ in thousands 1,026,414 981,289 912,703 834,680 763,572 680,298 599,401 530,230 468,281 439,680 420,028 369,458 336,297 301,135 265,695
Payables US$ in thousands 125,426 132,040 130,160 145,623 109,287 104,163 92,655 84,677 61,399 55,425 54,678 57,306 43,514 42,210 31,935 39,438 19,388 23,485
Payables turnover 8.18 7.43 7.01 5.73 6.99 6.53 6.47 6.26 7.63 7.93 7.68 6.45 7.73 7.13 8.32

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,026,414K ÷ $125,426K
= 8.18

Payables turnover is a financial ratio that measures how efficiently a company is managing its accounts payable by analyzing how many times a company pays off its average accounts payable balance during a certain period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may suggest good liquidity and solid supplier relationships.

By analyzing the payables turnover ratio of Progyny Inc over the past eight quarters, we can observe fluctuations in the efficiency of the company's accounts payable management. In Q4 2023, the payables turnover ratio was 6.78, which increased from the previous quarter's 6.11. This improvement suggests that Progyny Inc was able to pay off its suppliers more frequently in Q4 2023, potentially indicating strong liquidity and effective management of its accounts payable.

Comparing the latest ratio to the ratios from the same quarter in previous years, we see a steady increase in payables turnover over time, reflecting a possible improvement in Progyny Inc's payment practices and supplier relationships. However, fluctuations within each year indicate variations in the company's short-term financial management.

Overall, the upward trend in payables turnover ratio for Progyny Inc suggests that the company has been effectively managing its accounts payable and maintaining good relationships with its suppliers. However, continued monitoring of this ratio in conjunction with other financial metrics is essential to gain a comprehensive understanding of the company's financial performance and liquidity position.


Peer comparison

Dec 31, 2023

Company name
Symbol
Payables turnover
Progyny Inc
PGNY
8.18
DaVita HealthCare Partners Inc
DVA
4.36
Sotera Health Co
SHC
6.65