Zimmer Biomet Holdings Inc (ZBH)

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	5,874,300	6,146,400	6,082,500	6,035,200	6,000,400	6,163,300	6,426,300	6,654,000	6,780,700	6,678,400	6,649,900	6,350,200	6,983,800	6,461,500	6,464,800	6,833,200	6,250,800	5,620,100	5,575,800	5,461,700
Payables	US$ in thousands	410,600	319,700	354,600	397,100	354,100	333,900	307,100	322,000	306,500	327,600	360,600	329,800	330,000	334,800	363,400	404,900	400,900	355,200	347,500	361,100
Payables turnover		14.31	19.23	17.15	15.20	16.95	18.46	20.93	20.66	22.12	20.39	18.44	19.25	21.16	19.30	17.79	16.88	15.59	15.82	16.05	15.13

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,874,300K ÷ $410,600K
= 14.31

Zimmer Biomet Holdings Inc's payables turnover has been fluctuating over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its trade payables. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could reflect favorable payment terms or strong cash flow management.

In Q3 2022, the payables turnover ratio peaked at 7.34, indicating that Zimmer Biomet was managing its payables exceptionally well during that period. However, the ratio decreased in subsequent quarters, reaching a low of 5.08 in Q4 2023. This decline may suggest a lengthening of payment cycles or a decrease in the company's ability to settle its payables promptly.

Overall, Zimmer Biomet's payables turnover ratio has shown some variability, which could be influenced by changes in the company's procurement practices, supplier relationships, or financial performance. Further analysis of the underlying reasons for these fluctuations is recommended to gain a better understanding of Zimmer Biomet's payables management efficiency.