Blackline Inc (BL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	522,540	518,359	414,126	340,756	295,143
Payables	US$ in thousands	8,623	14,964	7,471	3,150	7,401
Payables turnover		60.60	34.64	55.43	108.18	39.88

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $522,540K ÷ $8,623K
= 60.60

The payables turnover ratio of Blackline Inc has fluctuated over the past five years. In 2023, the company had a payables turnover ratio of 60.60, indicating that the company paid off its accounts payable approximately 60.60 times during the year. This represents a significant increase from the previous year's ratio of 34.64.

The increase in the payables turnover ratio from 2022 to 2023 suggests that Blackline Inc has been managing its accounts payable more efficiently by paying off its obligations more frequently. This could indicate effective cash management or improved supplier relationships.

When compared to the ratios from earlier years, the payables turnover ratio in 2023 is relatively high, even surpassing the ratio in 2020 when it was 108.18. This may suggest that the company has been able to negotiate more favorable payment terms with its suppliers or has increased its focus on managing working capital efficiently.

Overall, an increasing payables turnover ratio indicates that Blackline Inc is effectively managing its accounts payable and that it is paying off its obligations more quickly, which can improve its liquidity position and strengthen its financial health.