Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Receivables Turnover
- The receivables turnover ratio exhibits significant fluctuations over the periods analyzed. Starting from a value of 7.25 in March 2019, it rises sharply to peak at 17.84 by December 2019. After a decline to 7.65 in March 2020, the ratio again trends upward, reaching values above 15 in both June 2021 and June 2022. The latest figures show a downward movement, with the ratio decreasing to 8.41 by June 2023. This pattern suggests periods of increased efficiency in collecting receivables followed by phases of slower turnover.
- Payables Turnover
- The payables turnover ratio similarly demonstrates volatility. Initially, it climbs from 9.95 in March 2019 to a high of 14.57 by June 2019, then declines to 8.28 in December 2019. Thereafter, the ratio experiences several oscillations, with values generally ranging between 6.86 and 13.6 from 2020 onward. The latest data indicates a ratio of 11.46 in June 2023. This variability may indicate changing payment strategies or supplier terms over the periods.
- Working Capital Turnover
- A clear downward trend is observed in the working capital turnover ratio. It starts at 2.17 in March 2019 and steadily decreases over the years, reaching its lowest value of 0.68 in December 2022. A slight improvement is noted toward the end of the dataset, with the ratio rising modestly to 0.72 in June 2023. This decrease over time reflects a reduction in the efficiency with which working capital is used to generate sales.
- Average Receivable Collection Period
- The average number of days to collect receivables shows an inverse relation to receivables turnover. Initially, the collection period decreases from 50 days in March 2019 to a low of 20 days by December 2019, indicating faster collections. Subsequently, the collection period increases significantly, peaking at 58 days in March 2023, before decreasing slightly to 43 days by June 2023. These shifts highlight variability in credit management effectiveness and customer payment behavior.
- Average Payables Payment Period
- The average payment period to suppliers varies considerably as well. Starting at 37 days in March 2019, it shortens to 25 days in June 2019, then lengthens to 51 days by March 2020. The period thereafter fluctuates with no clear persistent trend, ranging mostly between 27 and 53 days through to June 2023. The increase around early 2023 to over 50 days indicates extended payment terms or delayed payments during that timeframe.
Turnover Ratios
Average No. Days
Receivables Turnover
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
Net revenues | |||||||||||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||
Receivables turnover1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Receivables turnover
= (Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed quarters.
- Net Revenues
- Net revenues exhibit a seasonal pattern, regularly peaking in the December quarters of each year, consistent with holiday-driven sales cycles. Starting from a peak of 2,382 million USD in December 2018, revenues dipped notably in the March to September quarters annually before rebounding towards year-end. In 2020 and 2021, the December peaks increased notably, reaching 2,412 million USD and 2,162 million USD respectively. However, following this period, the December 2022 peak at 2,334 million USD shows a moderate increase compared to prior years, while revenues in the first half of 2023 remained relatively strong, suggesting sustained demand but some volatility quarter-to-quarter.
- Accounts Receivable, Net
- Accounts receivable demonstrate a generally increasing trend toward the year-end quarters, similar to net revenues, indicating a build-up in outstanding customer balances correlating with higher sales volumes. For instance, values increased sharply from 431 million USD in March 2018 to 1,035 million USD in December 2018, suggesting a buildup in credit sales or timing differences in collections during peak sales seasons. Subsequently, the peak receivables in December quarters fluctuated but remained above 900 million USD levels after 2019. A recurring pattern is observed where receivables reduce significantly post-year-end before climbing again towards year-end, reflecting the cyclical nature of sales and collections.
- Receivables Turnover Ratio
- The receivables turnover ratio shows considerable variability, with higher ratios typically observed in September and December quarters, suggesting more efficient collections during these periods. For example, the ratio rose from 7.25 in September 2018 to a peak of 17.84 in December 2018, indicating faster conversion of receivables into cash. This trend repeats with turnover ratios peaking during year-end quarters consistently through the data series. Lower turnover ratios in the March and June quarters imply slower collections or elevated receivables, consistent with observed seasonal working capital fluctuations.
Overall, the data suggests a strong seasonality effect in sales and receivables, with year-end quarters generating substantially higher revenues and accounts receivable balances. The company appears to manage receivables effectively by increasing turnover rates during peak sales periods, which supports liquidity despite higher outstanding balances. This cyclical pattern is critical for working capital planning and highlights the importance of seasonal sales cycles in financial performance management.
Payables Turnover
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||||||||
Accounts payable | |||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||
Payables turnover1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. |
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Payables turnover
= (Cost of revenuesQ2 2023
+ Cost of revenuesQ1 2023
+ Cost of revenuesQ4 2022
+ Cost of revenuesQ3 2022)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data over the quarters reveals notable fluctuations and trends in the key operational metrics.
- Cost of Revenues
-
The cost of revenues shows a generally cyclical pattern with periodic increases and decreases aligning with seasonal or operational cycles. Starting at 662 million USD in Q1 2018, the cost dropped to a low of 433 million USD in Q2 2019, before rising again to peak near the end of each calendar year. The end of 2020 saw a significant increase to 817 million USD, the highest value in the series, followed by some moderation in subsequent quarters but generally remaining elevated relative to earlier years. The fluctuations suggest variable cost management or sales volumes affecting cost of goods sold across periods.
- Accounts Payable
-
Accounts payable values also display variability but with less pronounced peaks compared to cost of revenues. Beginning at 172 million USD in Q1 2018, the payables amount had multiple spikes such as reaching 312 million USD in Q3 2018 and again near 295 million USD in Q4 2020. These spikes could indicate periods of increased purchasing or extended credit terms. Overall, the payable balances tend to ascend modestly over the years but with episodic decreases, reflecting changing supplier payment schedules or purchasing activity.
- Payables Turnover Ratio
-
The payables turnover ratio demonstrates notable volatility, implying shifting efficiency in managing payables. Higher turnover ratios in the range above 10, seen for example in Q2 2018 and Q3 2023, indicate faster payments to suppliers, whereas ratios dropping below 7, as in Q1 2023, suggest slower payment cycles. The ratio does not follow a consistent seasonal pattern but oscillates, potentially correlating inversely with accounts payable balances; when payables are high, turnover tends to be lower and vice versa.
In summary, the company's cost of revenues and accounts payable exhibit cyclical and episodic fluctuations, while the payables turnover ratio reflects varying payment pacing over time. The data suggests dynamic operational and financial management practices responsive to internal and external factors influencing expenses and supplier relationships.
Working Capital Turnover
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||
Less: Current liabilities | |||||||||||||||||||||||||||||
Working capital | |||||||||||||||||||||||||||||
Net revenues | |||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||
Working capital turnover1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Working capital turnover
= (Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital demonstrates a consistent upward trend throughout the observed periods. Starting at $3,483 million in March 2018, it increases steadily each quarter, reaching $12,174 million by June 2023. This indicates a strengthening liquidity position over time, with notable growth acceleration particularly evident from 2020 onward.
- Net Revenues
- Net revenues exhibit a more fluctuating pattern compared to working capital. Initially, revenues fluctuate between approximately $1,500 million to $2,400 million per quarter from 2018 to early 2021. There is a peak in revenues observed in December 2020 at $2,412 million, followed by some volatility with a general decline during most of 2022, reaching a low of $1,644 million in September 2022. However, the revenue bounces back in 2023, with values climbing to $2,383 million in June 2023. This variability suggests cyclicality or possible seasonality in revenue generation, with recovery phases following declines.
- Working Capital Turnover
- The working capital turnover ratio shows a declining trend over the periods reported. Starting at 2.17 in September 2018, it decreases consistently to 0.72 by June 2023. This decline signals that while working capital has grown, net revenues are not increasing at a proportional rate, implying reduced efficiency in the use of working capital to generate sales. The ratio falls steadily without interruption, reflecting a long-term downward pressure on asset utilization efficiency.
- Overall Analysis
- The data indicate that liquidity, as measured by working capital, has improved substantially over the analyzed timeframe. However, the growth in net revenues has been more uneven with notable volatility and seasonal patterns. The consistent decline in the working capital turnover ratio points to a diminishing effectiveness in converting working capital into sales dollar amounts, highlighting potential challenges in operational efficiency or changing business dynamics. Monitoring and addressing the factors impacting revenue stability and capital utilization efficiency would be critical for sustaining financial health.
Average Receivable Collection Period
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||||||||||||||||||||||||
Receivables turnover | |||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
Average receivable collection period1 | |||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. | |||||||||||||||||||||||||||||
Walt Disney Co. |
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits a cyclical pattern with notable fluctuations over the observed quarters. Starting from a value of 7.25 in March 2019, the ratio significantly increased to a peak of 17.84 by December 2019, indicating a marked improvement in the efficiency of collecting receivables during this period. However, in 2020, the ratio declined to a range between approximately 7.65 and 12.37 but again rose by the end of the year. In 2021, the trend continued upwards with values reaching above 15 by December. From 2022 onwards, the ratio showed increased volatility, with values dropping to 6.25 in March 2023, reflecting a relative decrease in collection efficiency, before partially recovering to 10.66 mid-year and then dipping slightly again.
- Average Receivable Collection Period
- The average receivable collection period moves inversely to the receivables turnover ratio, as expected. Starting at 50 days in March 2019, it decreased sharply to reach 20 days by December 2019, signaling faster collections. During 2020, the number of days hovered mostly between the high twenties and high forties, indicating moderate fluctuations but no clear persistent trend. In 2021, the collection period shortened again, reaching as low as 23 days in June and remaining below 30 days through the end of the year. In 2022 and early 2023, the collection period increased once more, peaking at 58 days in March 2023, which corresponds with the decreased receivables turnover and implies slower collections during the most recent period.
- General Insights
- Over the observed periods, the receivables management efficiency showed periods of strong improvement and subsequent moderation. The end of 2019 and parts of 2021 reflect peak efficiency in terms of turnover ratio and collection days. More recent data from 2022 to early 2023 suggest a deterioration in receivable collections, possibly indicative of changes in customer payment behavior or credit policy adjustments. The inverse relationship between turnover ratio and collection period is maintained throughout, confirming consistency in underlying financial dynamics.
Average Payables Payment Period
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||||||||||||||||||||||||
Payables turnover | |||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
Average payables payment period1 | |||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
Alphabet Inc. | |||||||||||||||||||||||||||||
Comcast Corp. | |||||||||||||||||||||||||||||
Meta Platforms Inc. | |||||||||||||||||||||||||||||
Netflix Inc. | |||||||||||||||||||||||||||||
Take-Two Interactive Software Inc. |
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio shows notable fluctuations over the periods analyzed. Starting at 9.95 in March 2019, the ratio increased sharply to a peak of 14.57 in June 2019, then exhibited a downward trend, dropping to 7.17 by March 2020. Subsequently, it rose again to around 12.89 in June 2020 before gradually declining and stabilizing within the range of approximately 7.66 to 11.15 through December 2021. In 2022, the turnover ratio demonstrated modest variability around 10, before experiencing a decrease to 6.86 in March 2023, followed by a recovery to 13.6 in June 2023. These movements indicate periods of changing efficiency in the company's management of accounts payable, possibly reflecting shifts in payment policies or supplier terms.
- Average Payables Payment Period
- The average payables payment period inversely mirrors the payables turnover trends, reflecting the number of days the company takes to pay its suppliers. Starting from 37 days in March 2019, the period shortened significantly to 25 days by June 2019, aligning with the peak in payables turnover. Thereafter, it extended to a maximum of 51 days in March 2020, coinciding with a trough in turnover. The payment period fluctuated between 28 and 48 days through 2020 and 2021, without a clear sustained trend. In 2022, the period generally remained within the mid-30s to high 30s range but spiked to 53 days in March 2023, indicating slower payments during that quarter. The latest data point from June 2023 shows a return to 27 days, suggesting a resumption of faster payments. These variations suggest the company's payment timing strategy has been responsive to operational or market conditions, balancing liquidity management with supplier relations.