Teradyne Inc (TER)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,139,550	1,287,890	1,496,220	1,335,730	955,136
Payables	US$ in thousands	180,131	139,722	153,133	133,663	126,617
Payables turnover		6.33	9.22	9.77	9.99	7.54

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,139,550K ÷ $180,131K
= 6.33

The payables turnover ratio for Teradyne, Inc. has fluctuated over the past five years. The ratio decreased from 7.54 in 2019 to 6.33 in 2020, indicating a lengthening of the time taken to pay its suppliers. However, there was an improvement in 2021, with the payables turnover increasing to 9.77 and continuing to rise to 9.99 in 2022, suggesting that the company was able to manage its accounts payable more efficiently during these periods.

In 2023, there was a slight decrease in the payables turnover ratio to 9.22, which may indicate a lengthening of the payables turnover period compared to the previous year. Overall, a higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly, which can be a positive sign of effective working capital management.

Further analysis of the company's payables turnover ratio in conjunction with other financial ratios and contextual information about the company's operations and industry practices would provide a more comprehensive understanding of Teradyne, Inc.'s payment policies and financial performance.