Varex Imaging Corp (VREX)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 603,100 | 575,900 | 546,600 | 548,100 | 523,900 |
| Payables | US$ in thousands | 64,700 | 78,200 | 58,800 | 72,900 | 58,200 |
| Payables turnover | 9.32 | 7.36 | 9.30 | 7.52 | 9.00 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $603,100K ÷ $64,700K
= 9.32
The payables turnover ratio for Varex Imaging Corp has shown fluctuations over the past five years. The ratio indicates how many times a company pays off its accounts payable during a specific period.
In September 2023, the payables turnover ratio was 9.32, which represents an increase from the previous year's ratio of 7.36. This suggests that Varex Imaging Corp was able to settle its accounts payable more frequently in 2023 compared to 2022.
Comparing to the ratios in 2021, 2020, and 2019, the company's payables turnover ratio in 2023 was also higher. It implies that the company managed its accounts payable more efficiently in 2023 than in the previous years.
Overall, the increasing trend in the payables turnover ratio indicates that Varex Imaging Corp has been effectively managing its accounts payable and paying suppliers in a timely manner. This could signify strong vendor relations and efficient working capital management within the company.
Peer comparison
Sep 30, 2023