International Business Machines (IBM)
Payables turnover
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 27,495,000 | 27,110,000 | 27,536,000 | 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 |
| Payables | US$ in thousands | 4,032,000 | 3,274,000 | 3,588,000 | 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 |
| Payables turnover | 6.82 | 8.28 | 7.67 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $27,495,000K ÷ $4,032,000K
= 6.82
The payables turnover ratio for International Business Machines (IBM) shows the efficiency with which the company pays its suppliers. The data provided indicates a fluctuating trend in the payables turnover ratio over the periods covered.
Starting from December 2019, the payables turnover ratio stood at 5.35, which increased to 6.16 by March 2020. Thereafter, the ratio decreased to 5.29 by June 2020 but saw a significant rise to 6.12 by September 2020. Subsequently, the trend continued with fluctuations, reaching 6.03 by December 2020.
However, a noticeable decline in the payables turnover ratio was observed in the following periods. By March 2021, the ratio dropped to 5.03, further declining to 4.22 by June 2021 and 3.48 by September 2021. This decreasing trend continued until December 2021 when a notable increase was seen, reaching 6.54.
The ratio continued to show fluctuations in the subsequent periods, with values varying between 6.87 and 7.69. By September 2023, the payables turnover ratio peaked at 8.23 before declining slightly to 6.67 by December 2023. The ratio then exhibited an upward trend, reaching 7.67 by March 2024 and 8.28 by September 2024. However, by December 2024, the ratio decreased to 6.82.
Overall, the payables turnover ratio for IBM displays a varying pattern over the time frame considered, indicative of changes in the company's payment practices and relationship with suppliers. Further analysis and comparison with industry benchmarks may be necessary to assess the efficiency and effectiveness of IBM's payables management strategy in more depth.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Payables Turnover (Quarterly Data)