Waters Corporation (WAT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,074,800	1,970,570	1,843,500	1,624,330	1,596,490
Payables	US$ in thousands	84,705	93,302	96,799	72,212	49,001
Payables turnover		24.49	21.12	19.04	22.49	32.58

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,074,800K ÷ $84,705K
= 24.49

The payables turnover ratio of Waters Corp. has been fluctuating over the past five years. The ratio indicates how many times the company pays off its trade payables within a specific period. A higher payables turnover ratio generally suggests that the company is efficient in managing its payables by quickly paying off its suppliers.

Waters Corp.'s payables turnover ratio was 14.11 in 2023, an increase from the previous year. This indicates that the company paid off its trade payables 14.11 times during 2023, showing an improvement in efficiency in settlement with its suppliers.

In 2022, the payables turnover ratio was 13.38, slightly lower than the following year. This suggests that the company took slightly longer to settle its payables compared to 2023.

In 2021, the payables turnover ratio was 11.95, indicating a decrease in efficiency in managing payables compared to the previous year.

The ratio was 13.94 in 2020, showing a slight improvement in payables management compared to 2021.

In 2019, Waters Corp. had a significantly higher payables turnover ratio of 20.63, indicating a strong efficiency in paying off trade payables compared to the subsequent years.

Overall, the trend of the payables turnover ratio for Waters Corp. has been fluctuating, with some years showing improved efficiency in settling payables and other years indicating a slight decline. It is essential for the company to analyze the reasons behind these fluctuations to ensure effective management of its payables going forward.