Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Alphabet Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Alphabet Inc. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Alphabet Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Alphabet Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Alphabet Inc. number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Alphabet Inc. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Receivables Turnover
Alphabet Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 307,394) | 282,836) | 257,637) | 182,527) | 161,857) | |
| Accounts receivable, net | 47,964) | 40,258) | 39,304) | 30,930) | 25,326) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.41 | 7.03 | 6.55 | 5.90 | 6.39 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Comcast Corp. | 8.80 | 9.58 | 9.69 | 9.03 | 9.65 | |
| Meta Platforms Inc. | 8.34 | 8.66 | 8.40 | 7.58 | 7.43 | |
| Netflix Inc. | 26.20 | 31.97 | 36.92 | 40.92 | 44.36 | |
| Walt Disney Co. | 7.21 | 6.54 | 5.04 | 5.15 | 4.49 | |
| Receivables Turnover, Sector | ||||||
| Media & Entertainment | 7.50 | 7.94 | 7.41 | 6.90 | 6.95 | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 7.76 | 8.07 | 7.77 | 7.20 | 7.04 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 307,394 ÷ 47,964 = 6.41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Alphabet Inc. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Payables Turnover
Alphabet Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 133,332) | 126,203) | 110,939) | 84,732) | 71,896) | |
| Accounts payable | 7,493) | 5,128) | 6,037) | 5,589) | 5,561) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 17.79 | 24.61 | 18.38 | 15.16 | 12.93 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Comcast Corp. | 2.96 | 3.05 | 3.09 | 2.91 | 3.18 | |
| Meta Platforms Inc. | 5.35 | 5.06 | 5.55 | 12.54 | 9.37 | |
| Netflix Inc. | 26.38 | 28.54 | 20.70 | 23.28 | 18.45 | |
| Walt Disney Co. | 3.91 | 3.36 | 2.76 | 3.33 | 3.05 | |
| Payables Turnover, Sector | ||||||
| Media & Entertainment | 6.76 | 6.66 | 5.90 | 6.03 | 5.39 | |
| Payables Turnover, Industry | ||||||
| Communication Services | 4.91 | 4.73 | 4.79 | 4.63 | 4.48 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 133,332 ÷ 7,493 = 17.79
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Alphabet Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working Capital Turnover
Alphabet Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 171,530) | 164,795) | 188,143) | 174,296) | 152,578) | |
| Less: Current liabilities | 81,814) | 69,300) | 64,254) | 56,834) | 45,221) | |
| Working capital | 89,716) | 95,495) | 123,889) | 117,462) | 107,357) | |
| Revenues | 307,394) | 282,836) | 257,637) | 182,527) | 161,857) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 3.43 | 2.96 | 2.08 | 1.55 | 1.51 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | 2.53 | 3.59 | 2.59 | 1.42 | 1.38 | |
| Netflix Inc. | 31.89 | 23.67 | — | 12.78 | — | |
| Walt Disney Co. | 54.74 | 3,308.88 | 26.13 | 7.58 | — | |
| Working Capital Turnover, Sector | ||||||
| Media & Entertainment | 5.30 | 5.15 | 3.53 | 2.48 | 2.88 | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 10.57 | 11.82 | 7.57 | 4.32 | 6.31 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Working capital turnover = Revenues ÷ Working capital
= 307,394 ÷ 89,716 = 3.43
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Alphabet Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Alphabet Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.41 | 7.03 | 6.55 | 5.90 | 6.39 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 57 | 52 | 56 | 62 | 57 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Comcast Corp. | 41 | 38 | 38 | 40 | 38 | |
| Meta Platforms Inc. | 44 | 42 | 43 | 48 | 49 | |
| Netflix Inc. | 14 | 11 | 10 | 9 | 8 | |
| Walt Disney Co. | 51 | 56 | 72 | 71 | 81 | |
| Average Receivable Collection Period, Sector | ||||||
| Media & Entertainment | 49 | 46 | 49 | 53 | 53 | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 47 | 45 | 47 | 51 | 52 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.41 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Alphabet Inc. number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Payables Payment Period
Alphabet Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 17.79 | 24.61 | 18.38 | 15.16 | 12.93 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 21 | 15 | 20 | 24 | 28 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Comcast Corp. | 123 | 120 | 118 | 125 | 115 | |
| Meta Platforms Inc. | 68 | 72 | 66 | 29 | 39 | |
| Netflix Inc. | 14 | 13 | 18 | 16 | 20 | |
| Walt Disney Co. | 93 | 109 | 132 | 110 | 120 | |
| Average Payables Payment Period, Sector | ||||||
| Media & Entertainment | 54 | 55 | 62 | 61 | 68 | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 74 | 77 | 76 | 79 | 81 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 17.79 = 21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Alphabet Inc. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |