Graham Holdings Co (GHC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,980 | -7,688 | -18,420 | 47,588 | -100,355 |
| Payables | US$ in thousands | 154,484 | 136,186 | 126,985 | 106,215 | — |
| Payables turnover | 0.14 | -0.06 | -0.15 | 0.45 | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $20,980K ÷ $154,484K
= 0.14
The payables turnover ratio for Graham Holdings Co. has been showing a positive trend over the past five years, indicating that the company is more efficient in managing its accounts payable. The ratio has increased from 16.65 in 2021 to 20.09 in 2023, demonstrating an improvement in the company's ability to pay off its suppliers. This elevated ratio suggests that Graham Holdings Co. is paying its suppliers more frequently within the year, which can reflect favorable relationships with vendors and potentially better negotiating power for the company. It is worth noting that there is missing data for the years 2020 and 2019, which limits the ability to assess the trend over a longer period. Overall, the increasing payables turnover ratio for Graham Holdings Co. indicates a positive trend in the management of the company's accounts payable.
Peer comparison
Dec 31, 2023