Xbiotech(Xbit) 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 XBIT 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', XBIT's payables turnover was 2.80, indicating how promptly the company pays its suppliers. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 1.98.
• In '2022', XBIT's payables turnover was 0.29, indicating how promptly the company pays its suppliers. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 1.99. Industry average increased by 0.01 compared to previous year.
• In '2023', XBIT's payables turnover was 0.00, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 1.93. Industry average declined by 0.05 from previous year.
Overall, XBIT's payables turnover has been volatile but showed a downward trend over the past 3 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.