Regeneron Pharmaceuticals Inc (REGN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,840,300	2,389,100	2,296,400	1,399,600	1,923,000
Payables	US$ in thousands	606,600	589,200	564,000	475,500	418,100
Payables turnover		4.68	4.05	4.07	2.94	4.60

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,840,300K ÷ $606,600K
= 4.68

The payables turnover ratio for Regeneron Pharmaceuticals, Inc. has fluctuated over the past five years. In 2023, the payables turnover ratio increased to 1.54, indicating that the company was able to pay off its accounts payable approximately 1.54 times during the year. This improvement from the previous year suggests that Regeneron Pharmaceuticals managed its accounts payable more efficiently in 2023 compared to 2022 when the ratio was 1.36.

The payables turnover ratio was particularly high in 2021 at 3.14, implying that the company paid off its accounts payable over three times during that year. This sharp increase in 2021 compared to previous years may be attributed to various factors, such as improved cash management practices or changes in supplier terms.

In contrast, the payables turnover ratio was lower in 2020 and 2019 at 1.03 and 0.87, respectively. A lower payables turnover ratio can indicate that the company took longer to pay off its accounts payable during those years, which could potentially strain supplier relationships or signal inefficiencies in working capital management.

Overall, monitoring changes in the payables turnover ratio over time can provide insights into how efficiently Regeneron Pharmaceuticals is managing its accounts payable and liquidity position.