Tesla Inc (TSLA)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 79,113,000 | 76,925,000 | 73,825,000 | 66,131,000 | 60,609,000 | 54,940,000 | 48,965,000 | 45,339,000 | 40,217,000 | 36,023,000 | 32,634,000 | 28,329,000 | 24,906,000 | 22,221,000 | 20,625,000 | 21,285,000 | 20,509,000 | 20,299,000 | 20,487,000 | 18,441,300 |
| Payables | US$ in thousands | 14,431,000 | 13,937,000 | 15,273,000 | 15,904,000 | 15,255,000 | 13,897,000 | 11,212,000 | 11,171,000 | 10,025,000 | 8,260,000 | 7,558,000 | 6,648,000 | 6,051,000 | 4,958,000 | 3,638,000 | 3,970,000 | 3,771,000 | 3,468,000 | 3,133,590 | 3,248,830 |
| Payables turnover | 5.48 | 5.52 | 4.83 | 4.16 | 3.97 | 3.95 | 4.37 | 4.06 | 4.01 | 4.36 | 4.32 | 4.26 | 4.12 | 4.48 | 5.67 | 5.36 | 5.44 | 5.85 | 6.54 | 5.68 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $79,113,000K ÷ $14,431,000K
= 5.48
The payables turnover ratio represents how efficiently a company manages its payables by comparing the amount of purchases made on credit to the average accounts payable during a specific period. A higher payables turnover ratio implies that the company is paying off its suppliers more frequently, which can be a positive sign of strong financial management.
Looking at the trend of Tesla Inc's payables turnover ratio, we can observe fluctuations over the past eight quarters. The ratio increased from 3.95 in September 2022 to 5.52 in September 2023, indicating an improvement in the company's ability to pay off its payables. However, in the subsequent quarter, the ratio decreased to 4.83, followed by a further decline to 4.16 in March 2023.
The significant fluctuation in the payables turnover ratio may suggest changes in Tesla Inc's payment terms with its suppliers or variations in the company's purchasing activities. It's important to assess these changes in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of Tesla Inc's overall financial performance and management of payables.
Peer comparison
Dec 31, 2023