Waters Corporation (WAT)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,638,820	2,074,800	1,970,570	1,843,500	1,624,330
Payables	US$ in thousands	99,931	84,705	93,302	96,799	72,212
Payables turnover		26.41	24.49	21.12	19.04	22.49

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,638,820K ÷ $99,931K
= 26.41

Payables turnover is a financial ratio that measures how efficiently a company manages its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance.

Looking at the data provided for Waters Corporation, we can see that the payables turnover has fluctuated over the years. It was 22.49 in 2020, decreased to 19.04 in 2021, increased in 2022 to 21.12, then further increased to 24.49 in 2023, and continued to rise to 26.41 in 2024.

The increasing trend in payables turnover from 2020 to 2024 indicates that Waters Corporation has been able to efficiently manage its accounts payable. A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which can lead to better relationships with suppliers and potentially taking advantage of early payment discounts.

Overall, the increasing trend in payables turnover for Waters Corporation is a positive indicator of its ability to manage its accounts payable effectively.