Teleflex Incorporated (TFX)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,544,790	2,374,590	2,379,150	2,221,590	2,278,700
Payables	US$ in thousands	132,247	126,807	118,236	102,520	102,916
Payables turnover		19.24	18.73	20.12	21.67	22.14

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,544,790K ÷ $132,247K
= 19.24

Teleflex Incorporated's payables turnover ratio measures how efficiently the company is managing its accounts payable by evaluating how many times the company pays off its suppliers during a specific period. The payables turnover has been relatively stable over the past five years, ranging from 9.94 to 11.82 times. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could signal effective cash management or possibly early payment discounts being taken advantage of. On the other hand, a lower ratio suggests a longer payment cycle, potentially indicating liquidity issues or strained relationships with suppliers. Overall, the consistent payables turnover ratio for Teleflex Incorporated suggests that the company has been managing its payables effectively in recent years.