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