Proto Labs Inc (PRLB)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 443,047 | 432,603 | 410,213 | 340,762 | 349,680 |
| Payables | US$ in thousands | 15,636 | 17,356 | 25,364 | 18,248 | 16,804 |
| Payables turnover | 28.34 | 24.93 | 16.17 | 18.67 | 20.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $443,047K ÷ $15,636K
= 28.34
Proto Labs Inc's payables turnover ratio has shown an increasing trend over the past five years, from 13.30 in 2019 to 18.03 in 2023. This indicates that the company is managing its accounts payable efficiently by paying off its suppliers more frequently each year.
A higher payables turnover ratio suggests that Proto Labs is paying its creditors more quickly, which can enhance relationships with suppliers and potentially help negotiate better credit terms in the future. However, it's essential for the company to strike a balance between managing payables effectively and maintaining good cash flow for operational needs.
Overall, the increasing trend in Proto Labs Inc's payables turnover ratio reflects a positive aspect of the company's liquidity management and working capital efficiency.
Peer comparison
Dec 31, 2023