Verizon Communications Inc (VZ)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	53,438,000	46,865,000	43,427,000	43,796,000	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
Payables	US$ in thousands	10,425,000	—	—	—	10,021,000	—	—	—	8,750,000	—	—	—	8,040,000	—	—	—	6,667,000	—	—	—
Payables turnover		5.13	—	—	—	4.28	—	—	—	5.16	—	—	—	5.14	—	—	—	7.34	—	—	—

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $53,438,000K ÷ $10,425,000K
= 5.13

The payables turnover ratio reflects how efficiently Verizon Communications Inc manages its trade payables. A higher ratio typically indicates that the company is paying its suppliers more quickly.

From the available data, the payables turnover ratio for Verizon was not calculable in March, June, and September of 2020 and 2021. In December 2020, the ratio was 7.34, showing that Verizon turned over its payables 7.34 times during that period. The ratio decreased to 5.14 in December 2021 and then increased slightly to 5.16 in December 2022. By December 2023, the ratio declined to 4.28.

The decrease in the payables turnover ratio from 2020 to 2023 suggests that Verizon may be taking longer to pay its suppliers, which could indicate possible liquidity issues or a change in the company's payment practices. Investors and analysts may want to further investigate the reasons behind this trend to assess the company's overall financial health and operational efficiency.