Shutterstock (SSTK)

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	611,475	611,475	601,404	591,883	573,670	573,670	536,389	527,918	519,301	689,065	685,993	660,451	636,295	591,315	553,573	531,979	539,082	541,063	558,063	580,640
Payables	US$ in thousands	9,221	15,083	10,545	9,373	9,108	7,147	6,095	7,778	7,183	6,467	5,889	7,208	10,092	5,118	5,402	6,088	2,442	4,109	4,504	4,125
Payables turnover		66.31	40.54	57.03	63.15	62.99	80.27	88.00	67.87	72.30	106.55	116.49	91.63	63.05	115.54	102.48	87.38	220.75	131.68	123.90	140.76

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $611,475K ÷ $9,221K
= 66.31

Based on the data provided for Shutterstock's payables turnover ratio over the years, we observe fluctuations in the company's ability to manage its accounts payable effectively. The payables turnover ratio measures how efficiently a company is able to pay off its suppliers.

The payables turnover ratio for Shutterstock ranged from a high of 220.75 in December 31, 2020, to a low of 40.54 in September 30, 2024. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of good financial health and efficient working capital management.

The significant decrease in the payables turnover ratio from 2020 to 2024 could imply several things: the company may be taking longer to pay its suppliers, experiencing liquidity issues, facing changes in its supplier relationships, or adjusting its payment terms. It is essential to consider the company's business operations, industry dynamics, and strategic decisions to fully understand the implications of these fluctuations in the payables turnover ratio.

Overall, a decreasing trend in the payables turnover ratio may warrant further investigation into Shutterstock's accounts payable management practices, cash flow position, and supplier relationships to assess the impact on the company's financial stability and operational efficiency.