Alphabet Inc Class A (GOOGL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 146,306,000 | 133,332,000 | 126,203,000 | 110,939,000 | 84,732,000 |
| Payables | US$ in thousands | 7,987,000 | 7,493,000 | 5,128,000 | 6,037,000 | 5,589,000 |
| Payables turnover | 18.32 | 17.79 | 24.61 | 18.38 | 15.16 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $146,306,000K ÷ $7,987,000K
= 18.32
The payables turnover ratio for Alphabet Inc Class A has shown fluctuations over the years. It increased from 15.16 in December 2020 to 18.38 in December 2021, indicating an improvement in the company's ability to manage its accounts payable. However, there was a significant jump in the ratio to 24.61 in December 2022, suggesting that Alphabet was able to convert its accounts payable into cash at a faster rate that year.
Subsequently, the payables turnover ratio decreased to 17.79 in December 2023 and slightly increased to 18.32 in December 2024. Despite the fluctuations, the company has generally shown efficiency in paying off its suppliers and managing its payables effectively over the years covered by the data.
It is important to further analyze the factors contributing to these variations in the payables turnover ratio to assess Alphabet's liquidity, working capital management, and supplier relationships comprehensively.
Peer comparison
Dec 31, 2024