AT&T Inc (T)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 55,743,000 | 56,543,000 | 80,816,000 | 73,720,000 | 90,085,000 |
| Payables | US$ in thousands | 27,433,000 | 27,309,000 | 31,101,000 | 29,511,000 | 31,836,000 |
| Payables turnover | 2.03 | 2.07 | 2.60 | 2.50 | 2.83 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $55,743,000K ÷ $27,433,000K
= 2.03
The payables turnover ratio for AT&T Inc has shown a slight fluctuation over the past five years. Starting at 2.83 in December 31, 2020, it decreased to 2.50 by December 31, 2021, before increasing to 2.60 by December 31, 2022. However, there was a notable drop in the ratio to 2.07 by December 31, 2023, and a further decline to 2.03 by December 31, 2024.
This indicates that the company is taking slightly longer to pay off its suppliers and vendors in recent years. A lower payables turnover ratio may suggest a less efficient management of accounts payable or potential liquidity challenges. It is important for AT&T Inc to closely monitor its payables turnover ratio and investigate the reasons behind the decreasing trend to ensure sustainable financial health and positive supplier relationships.
Peer comparison
Dec 31, 2024