Graham Holdings Co (GHC)

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	867,395	141,091	30,536	11,065	-7,687	-115,568	-64,308	-35,885	-14,095	-9,996	-9,137	29,813	59,379	-26,057	-47,673	-77,717	-100,348	-51,643	-47,895	-60,884
Payables	US$ in thousands	154,484	136,468	135,173	133,805	136,186	118,061	143,196	100,260	126,985	105,143	116,607	—	106,215	—	—	—	—	—	—	—
Payables turnover		5.61	1.03	0.23	0.08	-0.06	-0.98	-0.45	-0.36	-0.11	-0.10	-0.08	—	0.56	—	—	—	—	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $867,395K ÷ $154,484K
= 5.61

The payables turnover ratio for Graham Holdings Co. has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 16.46 in Q2 2022 to a high of 22.53 in Q1 2022.

Overall, the payables turnover ratio has been relatively stable, with an average of approximately 20.82 over the period. This indicates that, on average, Graham Holdings Co. is able to pay off its accounts payable around 20 times a year.

The higher the payables turnover ratio, the more efficient the company is managing its accounts payable. A higher ratio indicates that the company is paying off its suppliers more frequently, which could be a positive sign of strong liquidity and good relationships with suppliers.

However, it is essential to consider industry benchmarks and trends over time to fully assess the efficiency of Graham Holdings Co.'s payables management.