Twilio Inc (TWLO)

Payables turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,412,971	2,315,034	2,228,947	2,184,392	2,155,120	2,166,327	2,186,013	2,178,760	2,166,775	2,127,837	2,061,410	1,969,780	1,841,562	1,686,501	1,550,332	1,368,288	1,195,969	1,039,220	885,108	775,272
Payables	US$ in thousands	76,181	107,707	100,169	71,320	61,831	82,194	119,615	104,424	93,500	121,157	124,605	103,234	102,039	93,389	93,333	76,293	105,998	66,511	60,042	39,880
Payables turnover		31.67	21.49	22.25	30.63	34.86	26.36	18.28	20.86	23.17	17.56	16.54	19.08	18.05	18.06	16.61	17.93	11.28	15.62	14.74	19.44

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,412,971K ÷ $76,181K
= 31.67

The payables turnover ratio for Twilio Inc. exhibits notable fluctuations over the period analyzed. Initially, as of September 30, 2020, the ratio stood at 19.44, indicating a relatively rapid conversion of accounts payable into cash payments. This ratio declined consistently through the subsequent quarters, reaching a low of 11.28 by June 30, 2021, suggesting a lengthening of the Accounts Payable period or a delay in settling supplier obligations.

Following this trough, the ratio showed signs of recovery and minor volatility, rising again to 19.08 by September 30, 2022, reflective of a possible improvement in payment efficiency or negotiating terms. However, toward the end of 2022 and into early 2023, the ratio declined to approximately 16.54, indicating a slight extension in payment cycles.

A significant upward trend commences from March 31, 2024, with the ratio sharply increasing to 26.36 and further escalating to 34.86 by June 30, 2024. This suggests a notable shortening of the payable period and an accelerated clearance of liabilities. Subsequently, the ratio dips to 30.63 by September 30, 2024, and then declines further to 22.25 by December 2024.

In the following quarters, the ratio marginally rebounds to 21.49 by March 31, 2025, but then increases again to 31.67 by June 30, 2025. Overall, the payables turnover ratio demonstrates periods of both elongation and acceleration, indicating shifts in Twilio's payment policies, liquidity management strategies, or supplier relationship dynamics over time.

These fluctuations reflect the company's evolving approach to managing its accounts payable, possibly influenced by operational needs, cash flow considerations, or strategic negotiations with suppliers. The recent upward trend in the ratios suggests a trend toward more prompt payments in the later periods analyzed, while past declines indicate periods of extended payables.