Meta Platforms Inc. (META)
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 | 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 | 12,769,000 | 12,074,000 | 11,337,000 | 10,244,000 |
| Payables | US$ in thousands | 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 | 1,363,000 | 860,000 | 655,000 | 604,000 |
| Payables turnover | 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 | 9.37 | 14.04 | 17.31 | 16.96 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $25,958,000K ÷ $5,712,000K
= 4.54
The payables turnover ratio for Meta Platforms Inc has shown variability over the past eight quarters. The ratio measures how efficiently the company is managing its accounts payable by indicating how many times in a year the company pays off its suppliers.
In Q2 2023, the payables turnover ratio was at its highest at 8.44, indicating that Meta Platforms Inc was able to pay off its suppliers approximately 8.44 times during that quarter. This suggests a higher efficiency in managing payables compared to previous quarters.
However, in Q4 2022, the payables turnover ratio was at its lowest at 5.06, indicating that the company paid off its suppliers 5.06 times during that quarter. This suggests a decrease in efficiency compared to Q2 2023.
Overall, the fluctuation in the payables turnover ratio suggests varying levels of efficiency in managing accounts payable over the specified quarters. It is important for Meta Platforms Inc to closely monitor and manage its payables turnover to ensure effective utilization of working capital and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023