Meta Platforms Inc. (META)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 25,959,000 | 25,249,000 | 22,649,000 | 16,692,000 | 12,770,000 |
| Payables | US$ in thousands | 5,712,000 | 6,107,000 | 5,135,000 | 1,331,000 | 1,363,000 |
| Payables turnover | 4.54 | 4.13 | 4.41 | 12.54 | 9.37 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $25,959,000K ÷ $5,712,000K
= 4.54
The payables turnover ratio for Meta Platforms Inc has fluctuated over the past five years, indicating changes in the company's ability to manage its accounts payable effectively.
In 2023, the company's payables turnover ratio was 5.35, which suggests that Meta Platforms Inc paid off its suppliers approximately 5.35 times during the year. This represents a slight increase compared to the previous year, indicating a slightly more efficient management of accounts payable.
Looking back at 2022 and 2021, the payables turnover ratio was 5.06 and 5.55, respectively. These figures show a relatively stable performance in managing payables during those years.
However, in 2020, there was a significant spike in the payables turnover ratio to 12.54, which could indicate either a more aggressive approach in paying off suppliers or a change in the company's payment terms. This is a notable deviation from the trend seen in the surrounding years.
Similarly, in 2019, the payables turnover ratio was 9.37, reflecting a strong performance in managing accounts payable efficiently.
In conclusion, while there have been fluctuations in Meta Platforms Inc's payables turnover ratio over the past five years, the company has generally demonstrated a consistent ability to manage its accounts payable effectively, with some variations that may be attributed to changes in payment strategies or supplier relationships.
Peer comparison
Dec 31, 2023