Alphabet Inc Class A (GOOGL)
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
To analyze Alphabet Inc's payables turnover, we can calculate the average payables turnover over the period from March 31, 2022, to December 31, 2023. By summing the individual payables turnover values and dividing by the total number of periods, we derive an average payables turnover of approximately 24.15.
The payables turnover ratio measures the efficiency with which a company manages its payments to suppliers. A higher payables turnover indicates that the company is paying its suppliers more frequently, which can be an indication of good financial health and strong supplier relationships. Conversely, a lower turnover can suggest that the company is taking longer to pay its suppliers or is not managing its payables as effectively.
In the case of Alphabet Inc, the average payables turnover of 24.15 suggests that the company is efficiently managing its payments to suppliers. The increasing trend in payables turnover from December 2022 to March 2023 indicates an improvement in the company's ability to pay its suppliers. However, the subsequent decrease in payables turnover from March 2023 to December 2023 may warrant further investigation to understand the underlying reasons for this change. Additionally, comparing this ratio to industry benchmarks or historical performance can provide further insights into Alphabet Inc's payables management.
Peer comparison
Dec 31, 2023