Dentsply Sirona Inc (XRAY)
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 | 2,181,000 | 4,016,000 | 4,906,000 | 4,866,000 | 4,757,000 | 4,267,000 | 3,109,000 | 3,122,000 | 3,132,000 | 3,006,000 | 2,952,300 | 2,675,200 | 2,868,200 | 3,516,900 | 3,554,300 | 3,901,400 | 3,763,500 | 3,767,900 | 3,798,100 | 3,966,500 |
| Payables | US$ in thousands | 305,000 | 262,000 | 265,000 | 267,000 | 279,000 | 271,000 | 289,000 | 277,000 | 262,000 | 271,000 | 281,000 | 283,000 | 302,000 | 242,800 | 214,100 | 271,100 | 308,000 | 246,300 | 248,100 | 269,000 |
| Payables turnover | 7.15 | 15.33 | 18.51 | 18.22 | 17.05 | 15.75 | 10.76 | 11.27 | 11.95 | 11.09 | 10.51 | 9.45 | 9.50 | 14.48 | 16.60 | 14.39 | 12.22 | 15.30 | 15.31 | 14.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,181,000K ÷ $305,000K
= 7.15
The payables turnover ratio for DENTSPLY Sirona Inc has shown some variability over the past eight quarters. The ratios range from a low of 6.43 in Q4 2022 to a high of 7.08 in Q3 2023. This indicates that, on average, the company is able to pay off its accounts payable approximately 6.6 times per year.
The increasing trend in the payables turnover ratio from Q4 2022 to Q3 2023 suggests that DENTSPLY Sirona Inc has been managing its accounts payable more efficiently. A higher payables turnover ratio may indicate that the company is paying its suppliers more quickly or taking advantage of early payment discounts, which can improve relationships with suppliers and enhance the company's financial position.
Overall, the consistent payables turnover ratios above 6 indicate that DENTSPLY Sirona Inc is effectively managing its accounts payable and maintaining a healthy balance between payments to suppliers and cash flow management. However, it is important to consider industry benchmarks and compare the company's payables turnover ratio with its peers to gain a more comprehensive understanding of its performance in this area.
Peer comparison
Dec 31, 2023