Somnigroup International Inc. (SGI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,796,700 | 2,871,600 | 2,772,100 | 2,038,500 | 1,763,800 |
| Payables | US$ in thousands | 311,300 | 359,800 | 432,000 | 324,100 | 251,700 |
| Payables turnover | 8.98 | 7.98 | 6.42 | 6.29 | 7.01 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,796,700K ÷ $311,300K
= 8.98
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers during a specific period. For Somnigroup International Inc., the payables turnover ratio fluctuated over the five years in question.
In December 2019, the payables turnover ratio was 7.01, indicating that the company paid its suppliers approximately 7.01 times during that year. This ratio decreased to 6.29 by December 2020, suggesting a potential delay in payments to suppliers. However, the ratio improved slightly to 6.42 by December 2021.
Notably, in December 2022, Somnigroup's payables turnover ratio increased significantly to 7.98, signaling a more efficient management of accounts payable and potentially quicker payments to suppliers. This improvement continued into December 2023, with a payables turnover ratio of 8.98, the highest among the years analyzed.
Overall, the upward trend in the payables turnover ratio from 2020 to 2023 indicates that Somnigroup International Inc. improved its efficiency in managing supplier payments and may have enhanced its relationships with suppliers by paying them more promptly.
Peer comparison
Dec 31, 2023