Alphabet Inc Class C (GOOG)
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 | 133,332,000 | 131,099,000 | 129,028,000 | 127,216,000 | 126,203,000 | 123,849,000 | 120,312,000 | 116,435,000 | 110,939,000 | 104,031,000 | 97,527,000 | 89,853,000 | 84,732,000 | 79,672,000 | 76,123,000 | 74,866,000 | 71,896,000 | 68,794,000 | 65,507,000 | 62,094,000 |
| Payables | US$ in thousands | 7,493,000 | 5,803,000 | 5,313,000 | 4,184,000 | 5,128,000 | 6,303,000 | 4,409,000 | 3,436,000 | 6,037,000 | 4,616,000 | 4,708,000 | 4,801,000 | 5,589,000 | 4,391,000 | 4,064,000 | 4,099,000 | 5,561,000 | 4,142,000 | 3,925,000 | 3,710,000 |
| Payables turnover | 17.79 | 22.59 | 24.29 | 30.41 | 24.61 | 19.65 | 27.29 | 33.89 | 18.38 | 22.54 | 20.72 | 18.72 | 15.16 | 18.14 | 18.73 | 18.26 | 12.93 | 16.61 | 16.69 | 16.74 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $133,332,000K ÷ $7,493,000K
= 17.79
The payables turnover for Alphabet Inc has shown fluctuations over the past eight quarters, ranging from a low of 17.79 in Q4 2023 to a high of 33.89 in Q1 2022. This ratio reflects the efficiency with which the company manages its accounts payables by indicating how many times a company pays off its average accounts payable balance in a given period.
A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be a positive sign of strong liquidity and efficient cash management. Conversely, a lower payables turnover ratio could imply that the company is taking longer to pay its suppliers, potentially affecting relationships and terms with vendors.
The declining trend from Q1 2022 to Q4 2023 suggests a lengthening period for paying off accounts payables, which may warrant further investigation into the company's cash flow management and vendor relationships. Overall, monitoring changes in the payables turnover ratio can provide valuable insights into Alphabet Inc's liquidity, financial health, and operational efficiency.
Peer comparison
Dec 31, 2023