Dentsply Sirona Inc (XRAY)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,077,000 | 4,945,000 | 1,790,000 | 3,550,000 | 3,858,200 |
| Payables | US$ in thousands | 305,000 | 279,000 | 262,000 | 302,000 | 308,000 |
| Payables turnover | 13.37 | 17.72 | 6.83 | 11.75 | 12.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,077,000K ÷ $305,000K
= 13.37
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing its cost of goods sold to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be a sign of strong supplier relationships or effective cash management.
Analyzing DENTSPLY Sirona Inc's payables turnover over the past five years, we observe some fluctuation in the ratio. In 2023, the payables turnover ratio was 6.16, down from 6.43 in 2022 and 7.19 in 2021, but higher than 5.52 in 2020 and 6.05 in 2019.
The decreasing trend from 2021 to 2023 could suggest a potential slowdown in the company's ability to pay its suppliers promptly or efficiently manage its accounts payable. However, the ratio still remains within a reasonable range, indicating that the company continues to effectively manage its accounts payable turnover.
Further qualitative analysis and comparison with industry peers would be beneficial to gain a deeper understanding of DENTSPLY Sirona Inc's payables turnover performance and its implications for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023