Live Nation Entertainment Inc (LYV)
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 | 21,459,660 | 19,975,030 | 18,122,140 | 16,992,130 | 15,799,390 | 14,197,390 | 11,092,120 | 7,703,071 | 6,527,096 | 4,336,821 | 2,475,362 | 2,440,377 | 3,394,702 | 5,752,007 | 8,564,666 | 10,868,730 | 11,064,090 | 8,139,900 | 8,219,240 | 7,975,830 |
| Payables | US$ in thousands | 267,493 | 276,982 | 293,865 | 172,649 | 180,076 | 195,327 | 219,744 | 67,008 | 110,623 | 111,142 | 90,360 | 72,913 | 86,356 | 88,869 | 124,806 | 87,840 | 100,237 | 119,910 | 170,274 | 103,567 |
| Payables turnover | 80.23 | 72.12 | 61.67 | 98.42 | 87.74 | 72.69 | 50.48 | 114.96 | 59.00 | 39.02 | 27.39 | 33.47 | 39.31 | 64.72 | 68.62 | 123.73 | 110.38 | 67.88 | 48.27 | 77.01 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $21,459,660K ÷ $267,493K
= 80.23
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the amount of purchases made on credit to the average accounts payable during a specific period. In the case of Live Nation Entertainment Inc, the payables turnover ratio has shown significant fluctuations over the past eight quarters.
In Q4 2023, the payables turnover ratio was 8.10, indicating that the company turned over its payables 8.10 times during the quarter. This is a significant increase from the previous quarters, suggesting that Live Nation has been more efficient in paying off its accounts payable.
The decreasing trend from Q3 2023 (6.25) to Q1 2023 (1.06) and the previous quarters indicates that Live Nation was taking longer to pay its suppliers and vendors during those periods. This could be due to various reasons such as cash flow constraints or changes in payment terms with suppliers.
The sudden increase in Q2 2023 to 3.20 followed by the substantial jump to 8.10 in Q4 2023 may signify improved supplier relationships or better cash management practices by Live Nation. However, it is essential to monitor if this high turnover ratio is sustainable and not a result of one-time factors.
The comparative analysis across the quarters indicates that Live Nation's payables turnover has been volatile, suggesting fluctuations in the company's payment patterns and relationships with suppliers. This highlights the importance of closely monitoring trends in the payables turnover ratio to assess Live Nation's efficiency in managing its accounts payable going forward.
Peer comparison
Dec 31, 2023