Quidel Corporation (QDEL)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Cost of revenue (ttm)	US$ in thousands	2,353,500	2,404,300	2,411,600	2,283,200
Payables	US$ in thousands	294,800	253,000	225,900	241,500	283,300	241,800	247,300
Payables turnover		7.98	9.50	10.68	9.45

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,353,500K ÷ $294,800K
= 7.98

The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating the number of times a company pays off its suppliers during a specific period.

Looking at the data provided for Quidel Corporation, we observe a fluctuating trend in the payables turnover ratio over the past seven quarters. Starting from 9.45 in December 2022, the ratio increased to 10.68 in June 2023 before declining to 7.98 in December 2023.

A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may imply strong cash flow management or negotiation power with suppliers. Conversely, a lower ratio could suggest potential liquidity issues or an extension of payment terms with suppliers.

Overall, the varying payables turnover ratios for Quidel Corporation over the analyzed period could indicate changing payment practices, supplier relationships, or internal efficiency in managing accounts payable. Further analysis in conjunction with other financial metrics would be beneficial to fully understand the company's financial health and operational efficiency.