Alphabet Inc Class A (GOOGL)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 146,306,000 | 143,268,000 | 140,023,000 | 136,432,000 | 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 |
| Payables | US$ in thousands | 7,987,000 | 7,049,000 | 6,092,000 | 6,198,000 | 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 |
| Payables turnover | 18.32 | 20.32 | 22.98 | 22.01 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $146,306,000K ÷ $7,987,000K
= 18.32
The payables turnover ratio measures how efficiently a company pays its suppliers by analyzing the number of times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that a company is managing its payables effectively.
Analyzing Alphabet Inc Class A's payables turnover ratio over multiple periods shows fluctuations in its payment efficiency. From March 31, 2020, to September 30, 2021, the payables turnover ratio steadily increased from 18.26 to 22.54, indicating improvement in Alphabet's ability to settle its payables promptly.
However, from December 31, 2021, to March 31, 2024, the payables turnover ratio experienced fluctuations, dropping to as low as 17.79 and then spiking to 33.89. These fluctuations could be attributed to various factors, such as changes in payment terms with suppliers, shifts in business operations, or other external factors affecting Alphabet's cash flow management.
Furthermore, in the later periods, from June 30, 2024, to December 31, 2024, the payables turnover ratio stabilized around the range of 18 to 23, indicating a relatively consistent payment efficiency.
Overall, the analysis of Alphabet Inc Class A's payables turnover ratio highlights both improvements and fluctuations in the company's ability to manage its payables effectively over the evaluated periods. Monitoring this ratio can provide insights into Alphabet's working capital management and supplier relationships.
Peer comparison
Dec 31, 2024