Zimmer Biomet Holdings Inc (ZBH)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 6,117,400 6,018,000 5,960,000 5,914,800 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
Payables US$ in thousands 194,600 322,400 341,800 370,300 410,600 319,700 354,600 397,100 354,100 333,900 307,100 322,000 306,500 327,600 360,600 329,800 330,000 334,800 363,400 404,900
Payables turnover 31.44 18.67 17.44 15.97 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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,117,400K ÷ $194,600K
= 31.44

Zimmer Biomet Holdings Inc has shown fluctuations in its payables turnover ratio over the past few years, as evidenced by the data provided. The payables turnover ratio indicates how efficiently a company is managing its accounts payable by measuring how many times a company pays off its suppliers in a given period.

Based on the data, the payables turnover ratio has generally been on an upward trend from March 2020 to December 2021, indicating that the company was paying off its suppliers at a faster rate during this period. The ratio peaked at 22.12 on December 31, 2021, reflecting an efficient management of payables during that quarter.

However, in the subsequent periods from March 2022 to December 2024, the payables turnover ratio started to decrease, with fluctuations seen quarter by quarter. This suggests that Zimmer Biomet Holdings Inc may be taking longer to pay off its suppliers, which could indicate changes in the company's payment policies or supplier relationships.

The significant drop in the payables turnover ratio to 14.31 on December 31, 2023, followed by a notable increase to 31.44 on December 31, 2024, is particularly interesting and may warrant further investigation into the company's payment practices during those periods.

Overall, the analysis of Zimmer Biomet Holdings Inc payables turnover ratio indicates changes in the company's efficiency in managing its accounts payable over the years, with fluctuations that may be influenced by various internal and external factors impacting the company's financial operations.