Teleflex Incorporated (TFX)

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	2,184,620	2,118,645	2,098,219	2,070,420	2,293,284	2,281,527	2,277,067	2,296,186	2,296,236	2,303,586	2,251,960	2,199,250	2,141,855	2,081,771	2,118,583	2,137,177	2,203,787	2,171,617	2,169,016	2,201,920
Payables	US$ in thousands	132,247	130,686	142,081	136,239	126,807	121,508	121,418	117,464	118,236	104,139	106,567	101,340	102,520	96,917	107,140	104,348	102,916	100,630	108,059	103,532
Payables turnover		16.52	16.21	14.77	15.20	18.08	18.78	18.75	19.55	19.42	22.12	21.13	21.70	20.89	21.48	19.77	20.48	21.41	21.58	20.07	21.27

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,184,620K ÷ $132,247K
= 16.52

The payables turnover ratio for Teleflex Incorporated has shown some fluctuations over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times during a period the company pays off its suppliers.

In the most recent quarter, Q4 2023, the payables turnover ratio was 10.04. This suggests that Teleflex paid off its suppliers approximately 10 times during that quarter, indicating a relatively efficient management of accounts payable.

Looking at the trend over the past quarters, there was a slight decrease from Q3 2023 to Q4 2023, however, the ratio remained relatively stable and within a narrow range between 9.18 and 10.78.

A higher payables turnover ratio is generally considered favorable as it indicates that the company is effectively managing its payables by paying its suppliers promptly. However, an extremely high ratio could also suggest that the company is pressuring suppliers for overly favorable payment terms.

Overall, based on the data provided, Teleflex Incorporated has maintained a consistently healthy payables turnover ratio, showcasing effective management of its accounts payable over the analyzed period.