Zimmer Biomet Holdings Inc (ZBH)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	6,117,300	5,874,400	6,000,400	6,780,700	6,983,800
Payables	US$ in thousands	194,600	410,600	354,100	306,500	330,000
Payables turnover		31.44	14.31	16.95	22.12	21.16

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,117,300K ÷ $194,600K
= 31.44

The payables turnover ratio for Zimmer Biomet Holdings Inc has shown fluctuations over the past five years. It was 21.16 in December 31, 2020, and improved to 22.12 by December 31, 2021, indicating that the company managed to pay off its accounts payable more frequently. However, there was a decline in the payables turnover ratio to 16.95 by December 31, 2022, and further decreased to 14.31 by December 31, 2023. This suggests that the company took longer to pay its suppliers during these periods.

The payables turnover ratio significantly increased to 31.44 as of December 31, 2024. This sharp rise could indicate improved efficiency in managing accounts payable, as the company was able to pay off its suppliers at a much faster rate compared to the previous years. Overall, analyzing the payables turnover ratio provides insights into Zimmer Biomet Holdings Inc's ability to manage its trade payables efficiently, but the fluctuations over the years call for a closer examination of the company's financial management practices.