United Therapeutics Corporation (UTHR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	736,700	274,500	397,300	108,100	117,600
Payables	US$ in thousands	5,600	4,100	3,800	4,100	9,900
Payables turnover		131.55	66.95	104.55	26.37	11.88

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $736,700K ÷ $5,600K
= 131.55

The payables turnover ratio for United Therapeutics Corp has shown a consistent upward trend over the past five years. The ratio increased from 11.88 in 2019 to 45.98 in 2023, indicating a significant improvement in the company's ability to efficiently manage its accounts payable.

This trend suggests that the company is taking longer to pay off its suppliers compared to previous years, which could indicate improved cash flow management or negotiation power with suppliers. A higher payables turnover ratio generally reflects a more efficient use of working capital and potentially stronger supplier relationships.

Overall, the increasing payables turnover ratio for United Therapeutics Corp demonstrates the company's effective management of its payables and improvement in its financial efficiency over the years.