Ziff Davis Inc (ZD)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 200,323 | 185,650 | 195,554 | 188,053 | 178,403 |
| Payables | US$ in thousands | 164,352 | 123,256 | 120,829 | 130,978 | — |
| Payables turnover | 1.22 | 1.51 | 1.62 | 1.44 | — |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $200,323K ÷ $164,352K
= 1.22
Based on the data provided, Ziff Davis Inc's payables turnover has shown some fluctuations over the years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a specific period.
In December 31, 2020, the payables turnover ratio was not available ("-"), possibly due to missing or incomplete data. However, in subsequent years, there is a visible trend. The payables turnover ratio increased from 1.44 in December 31, 2021, to 1.62 in December 31, 2022, indicating an improvement in the speed at which Ziff Davis Inc pays off its suppliers or vendors.
Subsequently, there was a slight decline in the payables turnover ratio to 1.51 in December 31, 2023, before dropping further to 1.22 in December 31, 2024. These decreases suggest that Ziff Davis Inc may be taking longer to pay its suppliers in these years compared to the prior year.
Overall, a decreasing payables turnover ratio could indicate potential liquidity issues or a shift in the company's payment policies. Further analysis and comparison with industry peers would provide more insight into Ziff Davis Inc's payables management practices and financial health.