TechTarget Inc (TTGT)

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	223,568	226,354	229,726	230,348	229,881	227,462	229,000	221,674	214,175	192,213	161,661	139,705	117,729	108,176	105,178	105,300	103,110	99,404	98,453	94,154
Payables	US$ in thousands	5,312	4,915	3,329	3,052	3,298	7,207	7,680	2,213	3,783	2,956	3,718	2,583	4,303	1,624	1,847	1,691	2,036	2,007	1,028	1,987
Payables turnover		42.09	46.05	69.01	75.47	69.70	31.56	29.82	100.17	56.62	65.02	43.48	54.09	27.36	66.61	56.95	62.27	50.64	49.53	95.77	47.39

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $223,568K ÷ $5,312K
= 42.09

The payables turnover ratio for Techtarget Inc. has shown fluctuations over the past eight quarters. The highest value was observed in Q1 2023 at 24.65, indicating that the company was able to convert its accounts payable into purchases nearly 25 times during that quarter. This suggests that the company managed its payables efficiently during Q1 2023.

In contrast, the lowest payables turnover ratio was in Q3 2022 at 9.57, implying that the company took longer to pay off its suppliers during that quarter compared to others in the analysis period. However, it's worth noting that there was a significant improvement in Q3 2022 compared to the previous quarter, Q2 2022, where the payables turnover was 10.51.

Overall, the trend of the payables turnover ratio fluctuated throughout the period, indicating variability in how efficiently Techtarget Inc. managed its accounts payable. The latest value in Q4 2023 was 13.70, which is lower than the peak observed in Q1 2023 but still higher than some previous quarters, suggesting a moderate level of efficiency in managing payables.