Regeneron Pharmaceuticals Inc (REGN)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,224,100	2,840,300	2,389,100	2,296,400	1,399,600
Payables	US$ in thousands	789,500	606,600	589,200	564,000	475,500
Payables turnover		4.08	4.68	4.05	4.07	2.94

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,224,100K ÷ $789,500K
= 4.08

The payables turnover ratio for Regeneron Pharmaceuticals Inc has shown a consistent improvement over the past five years. In December 31, 2020, the payables turnover ratio stood at 2.94, indicating that the company paid its suppliers approximately 2.94 times during that year.

Subsequently, the ratio increased to 4.07 in December 31, 2021, and continued to rise to 4.05 in December 31, 2022. This upward trend suggests that the company has managed its accounts payable more efficiently, potentially negotiating better credit terms with suppliers and enhancing liquidity.

By December 31, 2023, the payables turnover ratio further improved to 4.68, indicating a more rapid turnover of payables. Although there was a slight decrease to 4.08 by December 31, 2024, the ratio remained at a favorable level, showcasing the company's ability to efficiently manage its payables.

Overall, the increasing trend in Regeneron Pharmaceuticals Inc's payables turnover ratio reflects effective cash flow management and strong supplier relationship management, which could positively impact the company's working capital and overall financial health.