IAC Inc. (IAC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,419,980 | 5,565,350 | 3,644,930 | 814,731 |
| Payables | US$ in thousands | 105,514 | 133,105 | 203,173 | 92,173 |
| Payables turnover | 41.89 | 41.81 | 17.94 | 8.84 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,419,980K ÷ $105,514K
= 41.89
IAC Inc.'s payables turnover has shown an improving trend over the past four years. The ratio has increased steadily from 8.84 in 2020 to 17.94 in 2021, and further to 41.81 in 2022 and 41.89 in 2023. This indicates that the company is paying its suppliers more frequently each year.
A high payables turnover ratio signifies that the company is efficiently managing its accounts payable by settling its obligations quickly. It could indicate strong bargaining power with suppliers, good liquidity management, or efficient working capital management.
Overall, the increasing trend in IAC Inc.'s payables turnover ratio signals effective management of trade payables and suggests the company's ability to fulfill its short-term obligations in a timely manner.
Peer comparison
Dec 31, 2023