International Business Machines (IBM)
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 | 27,560,000 | 27,504,000 | 27,452,000 | 27,724,000 | 27,843,000 | 27,980,000 | 27,448,000 | 26,568,000 | 25,866,000 | 14,783,000 | 17,768,000 | 20,825,000 | 24,314,000 | 24,401,000 | 24,963,000 | 25,691,000 | 26,181,000 | 41,055,000 | 41,316,000 | 41,969,000 |
| Payables | US$ in thousands | 4,132,000 | 3,342,000 | 3,732,000 | 3,728,000 | 4,051,000 | 3,806,000 | 3,707,000 | 3,453,000 | 3,955,000 | 4,248,000 | 4,214,000 | 4,140,000 | 4,033,000 | 3,985,000 | 4,719,000 | 4,172,000 | 4,896,000 | 4,042,000 | 4,724,000 | 5,711,000 |
| Payables turnover | 6.67 | 8.23 | 7.36 | 7.44 | 6.87 | 7.35 | 7.40 | 7.69 | 6.54 | 3.48 | 4.22 | 5.03 | 6.03 | 6.12 | 5.29 | 6.16 | 5.35 | 10.16 | 8.75 | 7.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $27,560,000K ÷ $4,132,000K
= 6.67
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance over a specific period.
In the case of International Business Machines Corp., the payables turnover ratio has fluctuated over the past eight quarters, ranging from 4.71 to 8.23.
The payables turnover improved significantly in Q3 2023 compared to the previous quarters, reaching 8.23, indicating that IBM was able to pay off its accounts payable more frequently during that period. This suggests that the company was managing its accounts payable more efficiently in that quarter.
However, Q4 2023 saw a slight decrease in payables turnover to 6.67, which may indicate that IBM took longer to pay off its accounts payable compared to the previous quarter. Despite the decrease, the payables turnover ratio for Q4 2023 remains relatively healthy.
It is important to continue monitoring IBM's payables turnover ratio in future quarters to assess the company's ability to manage its accounts payable efficiently and effectively.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Payables Turnover (Quarterly Data)