Tesla Inc (TSLA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 79,113,000 | 60,609,000 | 40,217,000 | 24,906,000 | 20,509,000 |
| Payables | US$ in thousands | 14,431,000 | 15,255,000 | 10,025,000 | 6,051,000 | 3,771,000 |
| Payables turnover | 5.48 | 3.97 | 4.01 | 4.12 | 5.44 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $79,113,000K ÷ $14,431,000K
= 5.48
The payables turnover ratio measures how efficiently a company manages its payments to suppliers. Tesla Inc's payables turnover has fluctuated over the past five years. In 2023, the payables turnover was 5.48, indicating that Tesla converted its accounts payable into purchases or cash nearly 5.48 times during the year. This represents an improvement compared to the prior year, where the turnover was 3.97. The increasing trend in payables turnover suggests that Tesla has been managing its supplier payments more efficiently. However, it is important to further analyze the company's payables management and its impact on liquidity and supplier relationships.
Peer comparison
Dec 31, 2023