Thermo Fisher Scientific Inc (TMO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,196,000 | 11,456,000 | 9,927,000 | 8,648,000 | 7,923,000 |
| Payables | US$ in thousands | 2,872,000 | 3,381,000 | 2,867,000 | 2,175,000 | 1,920,000 |
| Payables turnover | 3.90 | 3.39 | 3.46 | 3.98 | 4.13 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,196,000K ÷ $2,872,000K
= 3.90
Thermo Fisher Scientific Inc.'s payables turnover has shown an increasing trend over the past five years, indicating a more efficient management of its accounts payable. The ratio increased from 7.40 in 2019 to 8.97 in 2023. This suggests that the company is paying its suppliers at a faster rate relative to its purchases, which could potentially result in stronger supplier relationships and favorable credit terms. A higher payables turnover ratio generally indicates that the company is managing its working capital effectively and may be benefiting from improved cash flow management. Overall, the increasing trend in payables turnover for Thermo Fisher Scientific Inc. is a positive indication of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023