Qualcomm Incorporated (QCOM)
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 | 16,137,000 | 15,869,000 | 16,857,000 | 17,881,000 | 18,376,000 | 18,635,000 | 17,704,000 | 16,292,000 | 15,076,000 | 14,262,000 | 13,091,000 | 11,767,000 | 10,632,000 | 9,256,000 | 8,608,000 | 8,642,000 | 8,524,000 | 8,599,000 | 9,331,000 | 9,708,000 |
| Payables | US$ in thousands | 2,147,000 | 1,912,000 | 1,744,000 | 1,430,000 | 2,562,000 | 3,796,000 | 3,752,000 | 3,724,000 | 3,526,000 | 2,750,000 | 2,709,000 | 2,548,000 | 2,429,000 | 2,248,000 | 2,046,000 | 2,061,000 | 1,718,000 | 1,368,000 | 1,587,000 | 1,667,000 |
| Payables turnover | 7.52 | 8.30 | 9.67 | 12.50 | 7.17 | 4.91 | 4.72 | 4.37 | 4.28 | 5.19 | 4.83 | 4.62 | 4.38 | 4.12 | 4.21 | 4.19 | 4.96 | 6.29 | 5.88 | 5.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,137,000K ÷ $2,147,000K
= 7.52
Qualcomm Incorporated's payables turnover has fluctuated over the past 20 quarters, ranging from a low of 4.12 in March 2020 to a high of 12.50 in March 2023. The payables turnover ratio indicates how efficiently the company is managing its accounts payable. A higher turnover ratio suggests that the company is paying off its suppliers more frequently, which can be a positive sign of financial health and liquidity.
The increasing trend in payables turnover from 4.12 in March 2020 to 12.50 in March 2023 indicates that Qualcomm has been managing its payables more efficiently, possibly negotiating better terms with its suppliers or streamlining its payment processes. The company has shown a consistent improvement in managing its accounts payable during this period.
It is important to note that a very high payables turnover ratio could also indicate that the company is delaying payments to suppliers excessively, which may strain supplier relationships or indicate liquidity issues. Therefore, it is essential for Qualcomm to strike a balance in managing its payables effectively while maintaining healthy relationships with its suppliers.
Peer comparison
Dec 31, 2023