Alphabet Inc Class C (GOOG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 133,332,000 | 126,203,000 | 110,939,000 | 84,732,000 | 71,896,000 |
| Payables | US$ in thousands | 7,493,000 | 5,128,000 | 6,037,000 | 5,589,000 | 5,561,000 |
| Payables turnover | 17.79 | 24.61 | 18.38 | 15.16 | 12.93 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $133,332,000K ÷ $7,493,000K
= 17.79
The payables turnover ratio measures how efficiently a company is managing its accounts payable. Alphabet Inc's payables turnover over the past five years shows a fluctuating trend.
The payables turnover ratio has increased from 12.93 in 2019 to 24.61 in 2022, indicating that the company’s ability to manage its payables improved significantly during this time period. However, there was a notable decrease to 17.79 in 2023, which suggests that Alphabet Inc took longer to pay off its suppliers and vendors in that year.
Overall, the payables turnover ratio indicates that Alphabet Inc has been managing its payables efficiently, though it's important to assess the company's payment policies and its relationships with suppliers to fully understand the underlying factors driving these changes.
Peer comparison
Dec 31, 2023