Veeco Instruments Inc (VECO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 482,613 | 481,959 | 437,819 | 352,825 | 368,412 |
| Payables | US$ in thousands | 42,383 | 52,049 | 44,456 | 33,656 | 21,281 |
| Payables turnover | 11.39 | 9.26 | 9.85 | 10.48 | 17.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $482,613K ÷ $42,383K
= 11.39
The payables turnover ratio for Veeco Instruments Inc has shown fluctuations over the past five years. In 2023, the payables turnover ratio stood at 9.00, indicating that the company paid its suppliers approximately 9 times during the year. This represents an improvement compared to the previous year when the ratio was 7.36.
The trend in payables turnover ratios from 2020 to 2023 shows relatively consistent performance, ranging between 7.36 and 9.00. A higher payables turnover ratio generally indicates efficient management of payables, implying that the company is paying its suppliers more frequently within a given period.
However, it is important to note the context of the industry and company-specific factors when interpreting this ratio. A high payables turnover ratio could also imply aggressive payment policies that may strain relationships with suppliers. Conversely, a low ratio may suggest inefficient management of payables or a reliance on trade credit.
Overall, while Veeco Instruments Inc has shown improvements in its payables turnover ratio in 2023, further analysis and comparison with industry benchmarks are necessary to fully assess the company's payables management efficiency.
Peer comparison
Dec 31, 2023