TechTarget, Inc. Common Stock (TTGT)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 107,256 | 76 | 78,488 | 71,208 | 37,344 |
| Payables | US$ in thousands | 10,639 | 5,312 | 3,298 | 3,783 | 4,303 |
| Payables turnover | 10.08 | 0.01 | 23.80 | 18.82 | 8.68 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $107,256K ÷ $10,639K
= 10.08
The payables turnover ratio measures how efficiently a company manages its payables by examining how many times a company pays off its suppliers during a specific period. In the case of TechTarget, Inc., the payables turnover ratio has witnessed fluctuations over the years.
In 2020, the payables turnover ratio stood at 8.68, indicating that the company paid off its suppliers approximately 8.68 times during the year. This ratio increased significantly to 18.82 in 2021 and further rose to 23.80 in 2022, suggesting an improvement in the company's ability to settle its payables promptly.
However, the payables turnover ratio sharply declined to 0.01 in 2023. A payables turnover ratio of 0.01 may imply an issue with the company's payable management, indicating that the company took a much longer time to pay off its suppliers compared to previous years.
The absence of a value for 2024 (\u2014) prevents further analysis for that year. Overall, a declining payables turnover ratio, as seen in the case of TechTarget, Inc. from 2022 to 2023, might indicate potential liquidity issues or inefficiencies in payables management that warrant further investigation.
Peer comparison
Dec 31, 2024