Verizon Communications Inc (VZ)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	57,919,000	45,169,000	41,288,000	48,939,000	47,256,000
Payables	US$ in thousands	10,021,000	8,750,000	8,040,000	6,667,000	7,725,000
Payables turnover		5.78	5.16	5.14	7.34	6.12

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $57,919,000K ÷ $10,021,000K
= 5.78

Verizon Communications Inc's payables turnover has shown a decreasing trend over the past five years, declining from 7.08 in 2019 to 5.48 in 2023. This indicates that the company is taking longer to pay its suppliers in recent years. A lower payables turnover ratio may suggest that Verizon is managing its payment obligations less efficiently or may be negotiating less favorable credit terms with suppliers. It is important for the company to closely monitor and address any potential issues with its payables turnover to ensure optimal working capital management and supplier relationships.