Shutterstock (SSTK)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	768,525	710,368	636,195	546,682	589,352
Payables	US$ in thousands	9,108	7,183	10,092	2,442	6,104
Payables turnover		84.38	98.90	63.04	223.87	96.55

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $768,525K ÷ $9,108K
= 84.38

Shutterstock Inc's payables turnover ratio has fluctuated over the past five years. In 2023, the company's payables turnover was 38.72, indicating that the company paid its suppliers approximately 38.72 times during the year. This represents a decrease from the previous year when the turnover ratio was 43.76. The lower turnover ratio in 2023 suggests that Shutterstock took longer to pay its suppliers compared to the previous year.

Furthermore, compared to 2021 and 2019 when the payables turnover ratios were 27.51 and 45.57 respectively, 2023's ratio falls within this range. The significant increase in 2020, with a payables turnover ratio of 106.30, may have been an anomaly or could indicate more aggressive payment practices during that year.

Overall, the payables turnover ratio provides insight into how efficiently Shutterstock manages its accounts payable by evaluating how quickly the company pays off its suppliers. A decreasing trend in the payables turnover ratio may indicate a slower rate of paying off suppliers, potentially leading to strained supplier relationships or decreased leverage in negotiating payment terms. Further qualitative analysis is needed to understand the underlying reasons for the fluctuations in the payables turnover ratio over the years.