eBay Inc (EBAY)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,833,000	2,680,000	2,650,000	1,797,000	1,585,000
Payables	US$ in thousands	267,000	261,000	262,000	278,000	229,000
Payables turnover		10.61	10.27	10.11	6.46	6.92

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,833,000K ÷ $267,000K
= 10.61

The payables turnover ratio for EBay Inc. has shown a generally increasing trend over the past five years. In 2023, the payables turnover ratio stood at 10.61, indicating that the company pays its suppliers approximately 10.61 times a year.

This suggests that EBay is effectively managing its accounts payable by paying its suppliers more frequently compared to previous years. A higher payables turnover ratio could imply that the company is efficiently utilizing its cash flow and managing its working capital effectively.

The increasing trend in payables turnover ratio may indicate that EBay is improving its supplier relationships, negotiating better payment terms, or managing its inventory levels more efficiently. This could potentially lead to cost savings and improved liquidity for the company.

Overall, the trend in EBay Inc.'s payables turnover ratio reflects positively on the company's working capital management and efficiency in managing its accounts payable.