Name: Payables Turnover

Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.

Interpretation:
• In '2021', ELMD's payables turnover was 8.69, indicating how promptly the company pays its suppliers. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2021' stood at 3.20.
• In '2022', ELMD's payables turnover was 8.94, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2022' stood at 3.32. Industry average increased by 0.12 compared to previous year.
• In '2023', ELMD's payables turnover was 7.65, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2023' stood at 3.06. Industry average declined by 0.26 from previous year.
• In '2024', ELMD's payables turnover was 8.67, indicating how promptly the company pays its suppliers. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2024' stood at 3.30. Industry average increased by 0.24 compared to previous year.
Overall, ELMD's payables turnover has remained generally stable over the past 4 years.

Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable

Good Range: Ranges 5-15 depending on industry.