Shutterstock (SSTK)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	836,937	768,525	710,368	636,195	546,682
Payables	US$ in thousands	9,221	9,108	7,183	10,092	2,442
Payables turnover		90.76	84.38	98.90	63.04	223.87

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $836,937K ÷ $9,221K
= 90.76

The payables turnover for Shutterstock has shown fluctuations over the years, with a significant decrease from 2020 to 2021, indicating a slower rate of paying off its accounts payable. The ratio then increased in 2022, reflecting an improvement in managing payables. However, it decreased in 2023 and slightly increased in 2024.

The 2020 ratio of 223.87 suggests that Shutterstock was able to pay off its accounts payable approximately 224 times during that year. The sharp decline to 63.04 in 2021 may indicate either a change in payment terms with suppliers or difficulties in managing working capital.

The subsequent increase in 2022 to 98.90 signals a better utilization of suppliers' credit and potentially improved liquidity. However, the subsequent decreases in 2023 and 2024 to 84.38 and 90.76, respectively, suggest a moderation in the rate at which Shutterstock is settling its payables.

Overall, the trend in payables turnover indicates fluctuations in the company's ability to manage its accounts payable efficiently over the years, with some improvements in payment practices seen in 2022 but some moderation in the following years.