Veracyte Inc (VCYT)

Number of days of payables

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Payables turnover 18.09 8.72 8.53 6.02 13.30
Number of days of payables days 20.17 41.84 42.80 60.64 27.44

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 18.09
= 20.17

The analysis of Veracyte Inc's accounts payable period, as indicated by the number of days of payables, reveals notable fluctuations over the specified period from December 31, 2020, to December 31, 2024. At the end of 2020, the company’s payables period was approximately 27.44 days, reflecting a relatively prompt settlement of liabilities to suppliers.

In 2021, there was a significant increase to approximately 60.64 days, suggesting a considerable extension in the time taken to pay suppliers, potentially indicating strategic cash flow management, changes in credit terms, or financial strain. The subsequent year, 2022, saw a reduction to approximately 42.80 days, indicating a shortening of the payable period and a possible realignment towards more customary or negotiated payment terms.

By the end of 2023, the payable period was marginally stable at around 41.84 days, demonstrating relative consistency with the previous year’s figure. However, by the close of 2024, this figure decreased notably to approximately 20.17 days, representing a significant shortening in the payables cycle. This reduction may suggest a shift towards faster payment practices, improved liquidity, or a change in vendor credit terms.

Overall, the trend indicates a fluctuating accounts payable cycle, with a recent marked decrease in the days of payables, potentially reflecting an effort by Veracyte Inc. to improve supplier relationships, optimize cash flow, or adapt to changing operational or financial strategies.