Zimmer Biomet Holdings Inc (ZBH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,874,400 | 6,000,400 | 6,780,700 | 6,983,800 | 6,250,800 |
| Payables | US$ in thousands | 410,600 | 354,100 | 306,500 | 330,000 | 400,900 |
| Payables turnover | 14.31 | 16.95 | 22.12 | 21.16 | 15.59 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,874,400K ÷ $410,600K
= 14.31
Zimmer Biomet Holdings Inc's payables turnover ratio has exhibited fluctuations over the past five years. The ratio indicates the company's efficiency in managing its trade payables. A higher payables turnover ratio suggests that the company takes less time to pay off its suppliers, which could potentially indicate stronger supplier relationships or effective cash management.
In this case, Zimmer Biomet's payables turnover ratio has decreased from 6.67 in 2021 to 5.08 in 2023. This decline may suggest that the company is taking longer to pay its suppliers compared to previous years. It is crucial to delve deeper into the reasons behind this trend, as a decreasing payables turnover ratio could impact the company's working capital management and relationships with suppliers. Further analysis of the company's financial and operational strategies will provide more insights into the factors influencing this trend over time.
Peer comparison
Dec 31, 2023