Teradyne Inc (TER)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,139,550	1,159,881	1,196,134	1,248,566	1,287,894	1,334,506	1,372,312	1,476,674	1,496,225	1,447,407	1,428,463	1,356,912	1,335,729	1,297,961	1,174,405	1,047,477	955,136	893,747	889,902	869,237
Payables	US$ in thousands	180,131	176,117	153,157	142,382	139,722	167,975	175,606	156,493	153,133	154,912	156,103	177,473	133,663	150,427	184,163	129,633	126,617	117,936	103,449	118,816
Payables turnover		6.33	6.59	7.81	8.77	9.22	7.94	7.81	9.44	9.77	9.34	9.15	7.65	9.99	8.63	6.38	8.08	7.54	7.58	8.60	7.32

December 31, 2023 calculation

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

The payables turnover ratio reflects how efficiently a company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a specific period.

Looking at the historical data provided for Teradyne, Inc., we observe fluctuations in the payables turnover ratio over the past eight quarters. The payables turnover ratio has ranged from a low of 6.33 in Q4 2023 to a high of 9.44 in Q1 2022.

A higher payables turnover ratio indicates that a company is paying off its suppliers faster, which could imply favorable payment terms, strong cash flow management, or efficient working capital management. On the other hand, a lower payables turnover ratio may suggest either a lengthening of payment terms or challenges in managing working capital effectively.

Over the analyzed period, Teradyne, Inc. exhibits a generally stable pattern in its payables turnover ratio, with fluctuations occurring quarter to quarter but remaining within a relatively narrow range. This consistency implies that the company has been managing its accounts payable efficiently, maintaining healthy relationships with suppliers, and effectively utilizing working capital.

It is important to continue monitoring the payables turnover ratio in conjunction with other financial metrics to assess the overall financial health and performance of Teradyne, Inc.