Twilio Inc (TWLO)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 22.25 | 18.32 | 16.54 | 16.37 | 14.74 | |
| Number of days of payables | days | 16.40 | 19.93 | 22.06 | 22.30 | 24.76 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 22.25
= 16.40
The data indicates a consistent decline in the number of days Twilio Inc. takes to settle its payables over the observed four-year period. Specifically, at the end of 2020, the company’s payables period was approximately 24.76 days. This duration decreased slightly to 22.30 days in 2021 and further to 22.06 days in 2022. The trend continued into 2023, with the payables period reducing more significantly to 19.93 days, and by the end of 2024, it further declined to approximately 16.40 days.
This downward trend suggests that Twilio Inc. has been progressively shortening its accounts payable cycle, potentially indicating improved cash flow management or a strategic decision to pay suppliers more promptly. Such a reduction can enhance the company’s liquidity position, although it may also impact relationships with suppliers if payments are made more quickly than necessary. Overall, the trend reflects a notable shift towards quicker creditor payments over the observed period.
Peer comparison
Dec 31, 2024