ANGI Homeservices Inc (ANGI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 57,578 | 62,547 | 438,060 | 325,880 | 173,281 |
| Payables | US$ in thousands | 18,319 | 29,467 | 30,393 | 38,860 | 30,805 |
| Payables turnover | 3.14 | 2.12 | 14.41 | 8.39 | 5.63 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $57,578K ÷ $18,319K
= 3.14
The payables turnover ratio of ANGI Homeservices Inc demonstrates significant fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. In 2020, the ratio stood at 5.63, indicating that the company settled its accounts payable approximately 5.63 times within the year. This ratio experienced a notable increase in 2021, reaching 8.39, which suggests an improvement in the company's ability to pay off its suppliers more frequently, possibly reflecting increased operational efficiency or better cash flow management.
The upward trend continued in 2022, with the payables turnover rising sharply to 14.41. This substantial increase indicates that ANGI Homeservices was able to settle its obligations even more swiftly during this period, potentially indicative of strong sales performance, improved liquidity, or a strategic tightening of payment terms with suppliers.
However, in 2023, the ratio declined sharply to 2.12, signaling a significant slowdown in accounts payable turnover. This decrease could imply that the company delayed payments to suppliers, possibly due to cash flow challenges, strategic extension of payment terms, or changes in supplier relationships. This reduced turnover suggests a longer average tenure of payables, which might impact supplier relationships or credit terms.
In 2024, there was a slight recovery in the payables turnover ratio to 3.14, indicating a modest improvement in the frequency of settling payables compared to 2023. While still lower than previous years, this modest increase could suggest efforts to improve payment practices or an improvement in liquidity position.
Overall, the payables turnover ratio exhibits a volatile pattern, with periods of substantial acceleration and sharp deceleration. The fluctuations highlight changing dynamics in the company's payment strategies, liquidity management, and perhaps shifts in supplier relationships over these years.
Peer comparison
Dec 31, 2024