Twilio Inc (TWLO)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,228,950	2,191,160	2,061,410	1,527,470	885,108
Payables	US$ in thousands	100,169	119,615	124,605	93,333	60,042
Payables turnover		22.25	18.32	16.54	16.37	14.74

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,228,950K ÷ $100,169K
= 22.25

The payables turnover ratio for Twilio Inc. demonstrates a consistent upward trend over the five-year period from December 31, 2020, to December 31, 2024. Specifically, the ratio increased from 14.74 times in 2020 to 22.25 times in 2024, indicating a steady improvement in the company's ability to pay its suppliers more frequently within the fiscal year.

This progressive increase suggests that Twilio has been improving its short-term liquidity position, enabling it to settle its accounts payable obligations more rapidly. An increasing payables turnover ratio can also reflect enhanced operational efficiency or better cash flow management, potentially reducing the reliance on trade credit over time.

Overall, the upward trajectory in payables turnover implies that Twilio is either shortening its payment cycle, experiencing faster receipt of cash inflows, or potentially negotiating better payment terms with suppliers. This trend might contribute positively to the company's liquidity profile, though it warrants further analysis in conjunction with broader liquidity ratios to draw comprehensive conclusions about the company's financial health.