Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
Activision Blizzard Inc., short-term (operating) activity ratios (quarterly data)
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).
- Receivables Turnover
- The receivables turnover ratio shows notable fluctuations across the periods. It experienced a peak around mid-2019, reaching 17.84 in September 2019, followed by a significant decline towards the end of 2019 and early 2020. Thereafter, the ratio partially recovered in the first half of 2021, attaining values above 15. However, the trend reversed in the latter part of 2022 and into 2023, with a downward movement reaching levels as low as 6.25 by December 2022 and rebounding slightly but remaining low through mid-2023. Overall, this indicates periodic variability in the efficiency of receivables collection, with some periods of slower turnover signaling potential challenges in collecting accounts receivable promptly.
- Payables Turnover
- The payables turnover ratio displays a generally declining trend from early 2019 through late 2019, dropping from 14.57 to 7.17. Subsequently, this ratio became more variable, rising again during early to mid-2020, then falling and fluctuating around single digits through 2021 and 2022. Notably, there was a recovery to 13.6 in March 2023, indicating a relatively faster settlement of payables during that period. This variability suggests alternating periods of extensions and contractions in the payment cycle to suppliers, potentially reflecting shifts in cash management strategies or supplier terms.
- Working Capital Turnover
- The working capital turnover ratio exhibits a clear downward trend over the entire timeframe. Starting at 1.97 in March 2019, it steadily decreases to around 0.7 by mid-2023. This continuous decline indicates a gradual reduction in the efficiency with which the company utilizes working capital to generate sales. The trend suggests increasing amounts of working capital relative to revenue or a decrease in sales relative to available working capital, both of which may point to less efficient operational management or changing business conditions.
- Average Receivable Collection Period
- This metric fluctuates between roughly 20 days and 58 days across the periods. It reached its shortest collection period in September 2019 (20 days) and elongated notably at the end of 2019 and again in late 2022 and early 2023, where it climbed past 50 days. The increasing days in these later periods indicate slower collection of receivables, consistent with the observed declines in receivables turnover. The variability in collection periods suggests inconsistent credit management or changes in customer payment behavior over time.
- Average Payables Payment Period
- The average payables payment period shows significant variation over the quarters, moving between a low of 25 days in early 2019 and peaks exceeding 50 days in late 2019 and late 2022. Periods of extended payment terms occurred mostly towards the end of calendar years, with shorter payment periods in mid-2019 and mid-2023. This variation points to fluctuating payment practices, possibly reflecting internal cash flow management strategies or negotiation of supplier terms responding to changing liquidity conditions.
Turnover Ratios
Average No. Days
Receivables Turnover
Activision Blizzard Inc., receivables turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||
| Trade Desk 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).
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.
- Net Revenues
- The net revenues exhibit a fluctuating trend across the quarters under review. Initially, revenues decreased from $1,825 million in Q1 2019 to $1,282 million in Q3 2019, followed by a substantial increase to $1,986 million by Q4 2019. This pattern of fluctuation continues, with revenues generally increasing through 2020, reaching a peak of $2,412 million in Q4 2020. Throughout 2021, revenues remained relatively stable though slightly lower than the 2020 peak, ranging mostly between $2,070 million and $2,296 million. However, in 2022, a decline is evident, with the lowest revenue recorded in Q2 2022 at $1,644 million. The year concludes with a resurgence to $2,334 million in Q4 2022. Quarter 1 and 2 of 2023 show relatively high revenue figures, above $2,200 million, indicating a recovery or growth phase.
- Accounts Receivable, Net
- Accounts receivable figures present a variable pattern with significant fluctuations over the same period. The values range from a low of $386 million in Q3 2019 to a high of $1,204 million in Q4 2022. Generally, the accounts receivable tend to increase towards the end of each year, with Q4 quarters often showing the highest figures, which could indicate seasonal factors or year-end transaction accumulation. The trend shows a moderate rise in receivables during 2020, peaking at $1,052 million in Q4 2020. In 2021, accounts receivable again peak in Q4 at $972 million, followed by a noticeable rise to $1,204 million in Q4 2022. The first half of 2023 shows elevated levels compared to most preceding quarters, indicating potentially increased credit sales or delayed collections.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates considerable variability and an inverse relationship with accounts receivable levels. Higher turnover ratios, such as 17.84 in Q3 2019 and 15.65 in Q1 2022, coincide with lower accounts receivable values, illustrating efficient collection practices during these periods. Conversely, periods with lower turnover ratios (e.g., 6.25 in Q4 2022 and 7.65 in Q4 2019) align with peaks in accounts receivable, indicating slower collection or higher credit balances outstanding. The turnover ratio tends to decline toward the end of each year, mirroring the rise in receivables, and partially recovers in the subsequent quarters. The pattern suggests seasonal fluctuations in collection efficiency or sales terms. Overall, the ratio fluctuates between approximately 6 and 18, highlighting periods of both strong and weakened receivables management).
Payables Turnover
Activision Blizzard Inc., payables turnover calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||||||||||||||||||||
| Trade Desk 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).
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.
- Cost of Revenues
- The cost of revenues exhibits a generally fluctuating pattern over the analyzed periods. Initial quarters in 2019 show moderate amounts, ranging between 433 million and 656 million USD. A decline occurred in the early part of 2020, reaching approximately 469 to 505 million USD. However, there was a notable surge in the final quarter of 2020, peaking at 817 million USD, followed by subsequent quarters fluctuating between 479 million and 757 million USD. In the first half of 2023, the cost remained elevated compared to earlier years, with values around 656 to 665 million USD.
- Accounts Payable
- Accounts payable demonstrated fluctuations across periods without a clear monotonic trend. Starting at 166 million USD in March 2019, a gradual increase occurred through 2019, reaching a peak of 295 million USD at December 2019. Early 2020 saw a reduction to values near 158 million USD, followed by a generally rising trend that culminated in a high of 324 million USD in December 2022. The latest quarters in 2023 indicate a decrease to values around 177 to 225 million USD, reflecting some volatility in the company's short-term obligations.
- Payables Turnover Ratio
- The payables turnover ratio displays significant variability throughout the periods. The ratio started quite high at 14.57 in March 2019, but sharply declined during 2019, bottoming out near 7.17 in December 2019. A recovery occurred in 2020, with ratios fluctuating mainly between 7.66 and 12.89. In 2021 and 2022, the ratio largely stayed around 8 to 11, with minor oscillations. The end of 2022 showed a notable dip to 6.86, indicating slower turnover, but this reversed in early 2023 where the ratio rose again, peaking at 13.6 in March before settling near 11.46 in June. This pattern suggests intermittent changes in how quickly the company settles its payables, possibly linked to operational and financing strategies over different quarters.
Working Capital Turnover
Activision Blizzard Inc., working capital turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||
| Trade Desk 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).
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 exhibited a consistent upward trajectory throughout the observed periods, starting at $3,742 million in March 2019 and reaching $12,174 million by June 2023. This steady increase signifies the company's growing short-term financial resources and potentially improved liquidity position over time.
- Net Revenues
- Net revenues demonstrated fluctuations across the quarters, without a clear linear trend. Initial revenue showed $1,825 million in March 2019, followed by a decline to a low near $1,282 million in September 2019. Subsequently, revenues rose sharply at times, peaking at $2,412 million in December 2020. Post-2020, revenues generally fluctuated between $1,600 million and $2,300 million, with notable variability but no sustained trend of growth or decline. This pattern indicates that revenue generation was subject to variability, reflecting possible seasonal effects or market conditions.
- Working Capital Turnover Ratio
- The working capital turnover ratio showed a clear downward trend over the time frame. Beginning at 1.97 in March 2019, the ratio steadily decreased to a low of 0.68 in September 2022 before a slight recovery to 0.72 by June 2023. This decline implies that the company generated less revenue per dollar of working capital over time, indicating a reduced efficiency in utilizing its working capital to support sales.
- Summary and Implications
- Overall, the company’s increasing working capital suggests a stronger liquidity base or accumulation of current assets relative to current liabilities, which might serve as a buffer against short-term financial challenges. However, the declining working capital turnover ratio highlights a diminishing efficiency in converting working capital into sales revenue. Meanwhile, net revenues did not display consistent growth, showing variability that may point to fluctuations in market demand or operational factors. Taken together, these trends suggest that while the company's liquidity position strengthened, its operational efficiency and revenue generation faced challenges across the analyzed periods.
Average Receivable Collection Period
Activision Blizzard Inc., average receivable collection period calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||
| Trade Desk 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).
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 notable fluctuations across the periods analyzed. Initially, values increased from 12.39 to a peak of 17.84 by September 2019, indicating improved efficiency in collecting receivables. This was followed by a sharp decline to 7.65 in December 2019, suggesting a slowdown in collections. Subsequently, the ratio recovered somewhat, fluctuating between 10.94 and 15.65 through mid-2022, with observable dips toward the end of each calendar year. However, starting from late 2022, the ratio demonstrated a declining trend, reaching lows such as 6.25 by December 2022 and stabilizing at lower levels around 8.41 as of June 2023. These patterns indicate variability in the company's effectiveness in converting receivables to cash, with seasonal or cyclical influences potentially impacting collections.
- Average Receivable Collection Period
- The average collection period inversely mirrors the receivables turnover ratio patterns. Early periods show a steady decrease from 29 days in March 2019 down to 20 days by September 2019, reflecting faster collection times. This improved efficiency reversed sharply during the last quarter of 2019, where the period increased to 48 days, signaling slower receivable conversions. The collection period then stabilized mostly between 23 and 33 days throughout 2020 and early 2021, with occasional increases to 40 days or more at year-end intervals. Toward late 2022 and early 2023, the average days extended significantly, peaking at 58 days in December 2022, before slightly decreasing to 43 days by June 2023. This suggests lengthening delays in receivables collection in more recent quarters, potentially signaling challenges in cash flow or customer payment behaviors.
- Overall Trends and Insights
- Overall, the financial data reflects cyclical and seasonal fluctuations in receivables management efficiency. Periods of strong collection and high turnover during the first three quarters of many years are often offset by weaker performance in the fourth quarter. The notable deterioration in both turnover and collection period metrics in late 2019 and late 2022 indicates potential operational challenges or external economic factors affecting receivables. Management focus may be warranted to address the factors contributing to increased collection delays and to improve liquidity management strategies moving forward.
Average Payables Payment Period
Activision Blizzard Inc., average payables payment period calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||
| Trade Desk 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).
1 Q2 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibits noticeable fluctuations throughout the examined periods. Initially, the ratio decreased significantly from 14.57 in the first quarter of 2019 to a low of 7.17 by the end of the same year, indicating a slower rate of payables turnover. Subsequently, there was a rebound in early 2020 with the ratio rising back above 12, followed by another downward trend toward the end of 2020 and early 2021. From mid-2021 through 2022, the ratio maintained a moderately stable range, oscillating mostly between 9 and 11 before a sharp decline to 6.86 in the final quarter of 2022. The most recent data in mid-2023 shows a recovery to 11.46, suggesting an improvement in payables management.
- Average Payables Payment Period
- The average payables payment period mirrors the inverse pattern of the payables turnover ratio. It starts at 25 days in early 2019 and rises steadily to 51 days by the end of 2019, indicating lengthening payment cycles. In 2020, payment periods shortened again, fluctuating between 28 and 48 days. In 2021, the period mostly ranged from 33 to 45 days, reflecting moderate payment timing. Notably, the period lengthened substantially to 53 days in the last quarter of 2022, corresponding to the lowest payables turnover recorded. The data from early 2023 indicates a reduction back to about 27-32 days, consistent with the rebound in turnover ratio.
- Overall Insights
- The data reveals cyclical and somewhat volatile management of payables over the analyzed timeframe. Periods of rapid payments (high turnover, low payment period) alternate with phases of slower payments. These fluctuations may reflect strategic adjustments in working capital management, possibly in response to external economic conditions or company-specific considerations. The sharp increase in payment days and simultaneous decrease in turnover ratio during late 2019 and late 2022 likely signals periods of extended liquidity management or shifting supplier payment terms. The more recent trend toward shortened payment cycles may indicate an effort to restore efficiency and supplier relations.