Meta Platforms Inc. (META)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 30,161,000 | 25,959,000 | 25,249,000 | 22,649,000 | 16,692,000 |
| Payables | US$ in thousands | 7,687,000 | 5,712,000 | 6,107,000 | 5,135,000 | 1,331,000 |
| Payables turnover | 3.92 | 4.54 | 4.13 | 4.41 | 12.54 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $30,161,000K ÷ $7,687,000K
= 3.92
The payables turnover ratio for Meta Platforms Inc. has exhibited a downward trend over the past five years, declining from 12.54 in December 2020 to 3.92 in December 2024.
This indicates that the company's ability to efficiently manage its accounts payable has decreased over the period under review. A lower payables turnover ratio may imply that Meta Platforms is taking longer to pay its suppliers, which could potentially strain its relationships with them.
It is important for the company to closely monitor its payables turnover ratio as inefficient management of accounts payable can impact liquidity and relationships with suppliers. Further investigation into the reasons behind the declining trend in the payables turnover ratio is warranted to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024