Varex Imaging Corp (VREX)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 569,700 | 576,800 | 617,500 | 601,100 | 581,000 | 575,900 | 562,000 | 557,700 | 558,800 | 546,600 | 508,900 | 343,700 | 349,600 | 369,700 | 381,700 | 555,500 | 542,500 | 523,900 | 652,000 | 600,900 |
| Payables | US$ in thousands | 73,700 | 64,700 | 74,600 | 74,200 | 86,200 | 78,200 | 83,200 | 78,800 | 71,600 | 58,800 | 66,200 | 51,800 | 68,100 | 72,900 | 79,800 | 78,900 | 73,200 | 58,200 | 61,300 | 62,300 |
| Payables turnover | 7.73 | 8.91 | 8.28 | 8.10 | 6.74 | 7.36 | 6.75 | 7.08 | 7.80 | 9.30 | 7.69 | 6.64 | 5.13 | 5.07 | 4.78 | 7.04 | 7.41 | 9.00 | 10.64 | 9.65 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $569,700K ÷ $73,700K
= 7.73
The payables turnover ratio for Varex Imaging Corp has shown fluctuations over the past few quarters. The ratio indicates how quickly the company is paying off its suppliers. A higher payables turnover ratio generally suggests that the company is efficiently managing its accounts payable by paying its suppliers more frequently.
Looking at the data, we can see that the payables turnover ratio has been relatively stable, ranging from a low of 4.78 in June 2020 to a high of 9.30 in September 2021. The ratio has generally been above 6, indicating that Varex Imaging Corp is typically paying its suppliers every 2 months or less.
It is worth noting that the payables turnover ratio peaked at 10.64 in March 2019, suggesting that the company was paying its suppliers at a faster pace during that period. Conversely, the ratio dipped to 5.07 in September 2020, indicating a slower pace of payments to suppliers at that time.
Overall, the trend in Varex Imaging Corp's payables turnover ratio suggests that the company has been maintaining a relatively efficient accounts payable management strategy, with occasional fluctuations reflecting changes in payment practices or supplier relationships.
Peer comparison
Dec 31, 2023