Alphabet Inc Class A (GOOGL)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 18.32 | 17.79 | 24.61 | 18.38 | 15.16 | |
| Number of days of payables | days | 19.93 | 20.51 | 14.83 | 19.86 | 24.08 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 18.32
= 19.93
The number of days of payables for Alphabet Inc Class A has shown a decreasing trend over the years. As of December 31, 2020, the company took approximately 24.08 days to pay its payables, which decreased to 19.86 days by December 31, 2021. This trend continued with further reductions to 14.83 days by December 31, 2022, followed by a slight increase to 20.51 days by December 31, 2023, and a subsequent decrease to 19.93 days by December 31, 2024.
A decreasing number of days of payables indicates that the company is managing its payables more efficiently, potentially negotiating better terms with suppliers or improving its cash flow management. This trend can have positive implications for the company's liquidity and working capital management. However, it is essential to monitor this ratio over time to ensure that the company maintains a balance between managing payables effectively and preserving cash flow.
Peer comparison
Dec 31, 2024