Veracyte Inc (VCYT)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 156,218 112,903 101,582 74,400 41,455
Payables US$ in thousands 8,634 12,943 11,911 12,360 3,116
Payables turnover 18.09 8.72 8.53 6.02 13.30

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $156,218K ÷ $8,634K
= 18.09

The payables turnover ratio for Veracyte Inc over the specified period demonstrates notable fluctuations that reflect changes in the company's management of its trade payables relative to its cost of goods sold (COGS) or purchases.

In December 2020, the payables turnover was 13.30, indicating that the company settled its accounts payable approximately 13.3 times during that year, implying a relatively swift payment cycle. By December 2021, this ratio declined sharply to 6.02, suggesting an extension of the average periods taken to pay suppliers and potentially reflecting a strategic decision to delay payments or facing liquidity considerations.

In 2022, the ratio increased modestly to 8.53, indicating some improvement in the company's payment frequency, although it remained below the 2020 level. The subsequent year, 2023, saw the ratio marginally rise again to 8.72, showing a stabilization in payment practices at an elevated level compared to 2021.

By December 2024, the payables turnover experienced a significant increase to 18.09, nearly doubling the previous year's figure. This sharp rise suggests a notable acceleration in the company’s payment cycle, possibly indicative of improved cash management, better liquidity, or strategic changes leading to faster payment to suppliers.

Overall, the trend from 2020 to 2024 reflects an initial period of slower payments in 2021, followed by gradual stabilization, and then a marked improvement in 2024. This pattern may imply a strengthening of liquidity position or a strategic shift towards more timely supplier payments, which could influence supplier relationships and credit terms.