Lifemd 8.875%(Lfmdp) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for LFMDP compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', LFMDP's payables turnover was 1.51, indicating how promptly the company pays its suppliers. Industry average for Medical/Nursing Services in '2021' stood at 3.66.
• In '2022', LFMDP's payables turnover was 1.34, indicating how promptly the company pays its suppliers. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at 3.57. Industry average declined by 0.08 from previous year.
• In '2023', LFMDP's payables turnover was 1.23, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2023' stood at 3.01. Industry average declined by 0.57 from previous year.
• In '2024', LFMDP's payables turnover was 1.41, indicating how promptly the company pays its suppliers. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2024' stood at 3.62. Industry average increased by 0.61 compared to previous year.
Overall, LFMDP's payables turnover has consistently declined during the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.