Alphabet Inc Class A (GOOGL)
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 for Alphabet Inc has shown significant fluctuations over the past five years. In 2023, the company's payables turnover ratio was 17.79, indicating that Alphabet Inc was able to turn over its accounts payable approximately 17.79 times during the year. This represents a decrease from the previous year's ratio of 24.61. The downward trend in the payables turnover ratio from 2022 to 2023 suggests that the company took longer to pay its suppliers and vendors in 2023 compared to the previous year.
It is important to note that a higher payables turnover ratio generally indicates that a company is paying off its suppliers more quickly, which can be seen as a positive indicator of financial health. Conversely, a lower payables turnover ratio may imply that a company is taking longer to settle its payables, potentially signaling inefficiencies in its payment processes or strained supplier relationships.
Further analysis of the reasons behind the fluctuating payables turnover ratios in conjunction with other financial metrics and industry benchmarks would be necessary to gain a more comprehensive understanding of Alphabet Inc's payables management and overall financial performance.
Peer comparison
Dec 31, 2023