Godaddy Inc (GDDY)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,669,900	2,682,500	2,707,600	2,699,200	2,668,300	2,676,900	2,635,100	2,602,600	2,564,200	2,478,800	2,413,500	2,381,700	2,294,300	2,228,600	2,155,300	2,097,100	1,827,300	1,559,400	1,322,100	1,025,600
Payables	US$ in thousands	148,100	125,200	145,800	140,000	130,900	124,300	97,400	114,200	85,200	75,000	77,400	70,500	51,000	49,600	76,000	92,200	72,300	71,400	82,900	99,500
Payables turnover		18.03	21.43	18.57	19.28	20.38	21.54	27.05	22.79	30.10	33.05	31.18	33.78	44.99	44.93	28.36	22.75	25.27	21.84	15.95	10.31

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,669,900K ÷ $148,100K
= 18.03

The payables turnover ratio for Godaddy Inc has fluctuated over the past eight quarters. The ratio measures how efficiently the company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance during a period.

In Q4 2023, the payables turnover ratio was 10.63, slightly lower than the previous quarter's ratio of 12.39. This indicates that the company took longer to pay off its suppliers compared to the previous quarter. However, the ratio is still higher than the ratio from Q2 and Q3 2023, where it was 10.48 and 10.72, respectively.

Looking back further, we see a general downward trend in the payables turnover ratio since Q2 2022, which had a ratio of 14.88. This suggests that the company has been taking longer to pay off its suppliers over time.

Overall, the payables turnover ratio for Godaddy Inc has shown variability but has been relatively consistent in the range of 10-15 times over the past eight quarters, indicating that the company is managing its accounts payable efficiently, albeit with some fluctuations.