STAAR Surgical Company (STAA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 69,764 | 61,008 | 51,835 | 45,098 | 38,231 |
| Payables | US$ in thousands | 13,557 | 11,576 | 8,699 | 7,474 | 8,050 |
| Payables turnover | 5.15 | 5.27 | 5.96 | 6.03 | 4.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $69,764K ÷ $13,557K
= 5.15
STAAR Surgical Company's payables turnover ratio has shown a fluctuating trend over the past five years. The payables turnover ratio indicates how efficiently the company is managing its trade payables by converting them into purchases or cost of goods sold during a specific period.
From 2019 to 2023, STAAR Surgical's payables turnover ratio ranged from 4.75 to 6.03, with the highest being in 2020. A higher payables turnover ratio typically indicates that the company is paying its suppliers more frequently throughout the year, which may suggest good cash flow management and a strong relationship with suppliers.
However, it is essential to note that the payables turnover ratio alone may not provide a complete picture, as it should be analyzed in conjunction with other financial ratios and company-specific factors. Overall, the trend in STAAR Surgical's payables turnover ratio suggests that the company has been effectively managing its trade payables in recent years.
Peer comparison
Dec 31, 2023