Meta Platforms Inc. (META)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 30,162,000 | 29,018,000 | 27,853,000 | 26,490,000 | 25,958,000 | 26,599,000 | 26,105,000 | 25,352,000 | 25,249,000 | 23,261,000 | 23,316,000 | 23,523,000 | 22,649,000 | 21,511,000 | 19,934,000 | 18,364,000 | 16,692,000 | 14,973,000 | 13,934,000 | 13,412,000 |
| Payables | US$ in thousands | 7,687,000 | 7,656,000 | 3,173,000 | 3,785,000 | 5,712,000 | 5,142,000 | 3,865,000 | 4,557,000 | 6,107,000 | 4,846,000 | 4,990,000 | 4,181,000 | 5,135,000 | 3,104,000 | 1,922,000 | 1,884,000 | 1,331,000 | 1,106,000 | 920,000 | 829,000 |
| Payables turnover | 3.92 | 3.79 | 8.78 | 7.00 | 4.54 | 5.17 | 6.75 | 5.56 | 4.13 | 4.80 | 4.67 | 5.63 | 4.41 | 6.93 | 10.37 | 9.75 | 12.54 | 13.54 | 15.15 | 16.18 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $30,162,000K ÷ $7,687,000K
= 3.92
The payables turnover ratio for Meta Platforms Inc. has shown fluctuations over the periods analyzed. It measures how efficiently the company is managing its accounts payable by calculating how many times a company pays its average accounts payable balance during a specific period.
From March 31, 2020, to June 30, 2020, the payables turnover decreased from 16.18 to 15.15, indicating a slight decrease in the rate at which Meta Platforms Inc. was paying off its accounts payable. This trend continued, with a further decline to 3.79 by September 30, 2024, before increasing to 3.92 by December 31, 2024.
The significant decrease in payables turnover ratio from 16.18 in March 2020 to 3.79 in September 2024 suggests that the company took longer to pay off its suppliers during this period. A lower payables turnover ratio could indicate potential liquidity issues or changes in payment terms with suppliers.
Investors and analysts may closely monitor the payables turnover ratio to assess the company's efficiency in managing its payables, supplier relationships, and cash flow. Further analysis and comparison with industry benchmarks can provide additional insights into Meta Platforms Inc.'s financial performance and operational efficiency.
Peer comparison
Dec 31, 2024