Vicor Corporation (VICR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 271,989 | 285,910 | 304,859 | 250,744 | 228,398 |
| Payables | US$ in thousands | 8,737 | 12,100 | 22,207 | 21,189 | 14,121 |
| Payables turnover | 31.13 | 23.63 | 13.73 | 11.83 | 16.17 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $271,989K ÷ $8,737K
= 31.13
The payables turnover ratio for Vicor Corporation has fluctuated over the past five years. It stood at 16.17 in December 31, 2020, indicating that the company was able to pay off its suppliers approximately 16 times during that year. Subsequently, the ratio decreased to 11.83 by December 31, 2021, suggesting a slower rate of paying off payables.
However, there was an improvement in the payables turnover ratio in the following years. By the end of December 31, 2022, the ratio increased to 13.73, indicating the company was managing its payables more efficiently.
A significant increase was observed by December 31, 2023, with the payables turnover ratio spiking to 23.63. This substantial increase suggests that Vicor Corporation was paying off its suppliers at a much faster rate compared to the previous years.
Lastly, the payables turnover ratio saw another considerable rise by December 31, 2024, reaching 31.13. This indicates that the company was effectively managing its accounts payables, paying off its suppliers at a significantly higher frequency compared to the earlier years.
Overall, the trend in Vicor Corporation's payables turnover ratio shows variability but generally demonstrates an improvement in the efficiency of paying off its suppliers over the five-year period.
Peer comparison
Dec 31, 2024