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 76 78,488 71,208 37,344
Payables US$ in thousands 5,312 3,298 3,783 4,303
Payables turnover 0.01 23.80 18.82 8.68

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $—K ÷ $—K
= —

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

Company name
Symbol
Payables turnover
TechTarget, Inc. Common Stock
TTGT
Ziff Davis Inc
ZD
1.22