Vicor Corporation (VICR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 285,910 | 304,859 | 250,744 | 228,398 | 202,676 |
| Payables | US$ in thousands | 12,100 | 22,207 | 21,189 | 14,121 | 9,005 |
| Payables turnover | 23.63 | 13.73 | 11.83 | 16.17 | 22.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $285,910K ÷ $12,100K
= 23.63
Vicor Corp.'s payables turnover has shown fluctuations over the past five years. The payables turnover ratio measures how efficiently a company manages its outstanding supplier obligations by comparing purchases to average accounts payable.
In 2023, Vicor Corp.'s payables turnover ratio was relatively high at 16.54, indicating that the company was able to efficiently convert its accounts payable into purchases during the year. This may suggest strong supplier relationships and effective cash management.
Comparing this to the previous years, we observe a decreasing trend in the payables turnover ratio from 2019 to 2021 (15.55 to 8.55) followed by an increase in 2022 (9.84) and a significant jump in 2023.
The improvement in the payables turnover ratio in 2023 compared to the previous years may be a positive sign of Vicor Corp.'s enhanced liquidity, operational efficiency, and potentially better negotiating power with suppliers. However, further analysis and comparison with industry benchmarks are recommended to gain a comprehensive understanding of the company's payables management performance.
Peer comparison
Dec 31, 2023