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.
Short-term Activity Ratios (Summary)
Alphabet Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 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).
The analyzed period reveals a strategic shift in the management of short-term operating assets and liabilities, characterized by a deceleration in payment cycles to suppliers and a moderate increase in the time required to collect receivables, alongside an overall improvement in working capital efficiency.
- Receivables Management
- A gradual decline in the receivables turnover ratio is observed, moving from 7.79 in March 2022 to 6.71 by March 2026. This trend is mirrored by the average receivable collection period, which increased from 47 days to 54 days over the same period, peaking at 57 days in December 2023 and December 2025. This indicates a slight decrease in the efficiency of credit collection processes or a shift in customer payment terms.
- Payables Management
- A significant downward trend is evident in the payables turnover ratio, which dropped sharply from 33.89 in March 2022 to 9.94 in March 2026. Consequently, the average payables payment period expanded substantially from 11 days to 37 days. This suggests a deliberate extension of payment terms to suppliers, effectively increasing the company's operational liquidity by retaining cash for longer durations.
- Working Capital Efficiency
- The working capital turnover ratio exhibited a strong upward trajectory for the majority of the period, rising from 2.33 in March 2022 to a peak of 5.18 in September 2025. Although a subsequent decline to 4.12 by March 2026 occurred, the overall trend indicates a marked improvement in the company's ability to generate revenue relative to its investment in working capital.
The convergence of these trends suggests a transition toward a more aggressive cash management strategy. The substantial increase in the payables payment period more than offsets the marginal slowdown in receivable collections, contributing to a more favorable cash conversion cycle and enhanced utilization of working capital.
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Turnover Ratios
Average No. Days
Receivables Turnover
Alphabet Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Accounts receivable, net | 62,999) | 62,886) | 57,148) | 55,048) | 51,000) | 52,340) | 49,104) | 47,087) | 44,552) | 47,964) | 41,020) | 38,804) | 36,036) | 40,258) | 34,697) | 35,707) | 34,703) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | 6.71 | 6.41 | 6.75 | 6.75 | 7.05 | 6.69 | 6.92 | 6.97 | 7.14 | 6.41 | 7.24 | 7.46 | 7.90 | 7.03 | 8.13 | 7.79 | 7.79 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Comcast Corp. | 8.90 | 8.92 | 9.33 | 9.52 | 9.59 | 9.06 | 8.77 | 9.20 | 9.28 | 8.80 | 9.42 | 9.29 | 9.78 | 9.58 | 10.17 | 10.18 | 9.77 | ||||||
| Meta Platforms Inc. | 12.30 | 10.17 | 10.95 | 10.80 | 11.74 | 9.68 | 10.63 | 10.33 | 10.63 | 8.34 | 9.81 | 9.63 | 10.63 | 8.66 | 10.52 | 10.36 | 10.51 | ||||||
| Trade Desk Inc. | 0.89 | 0.77 | 0.80 | 0.82 | 0.84 | 0.73 | 0.77 | 0.75 | 0.78 | 0.68 | 0.75 | 0.74 | 0.79 | 0.67 | 0.73 | 0.73 | 0.73 | ||||||
| Walt Disney Co. | 6.36 | 7.14 | 7.05 | 7.48 | 6.72 | 7.18 | 6.94 | 7.42 | 6.30 | 7.21 | 6.70 | 6.81 | 6.03 | 6.54 | 5.93 | 5.57 | 4.90 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 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).
1 Q1 2026 Calculation
Receivables turnover
= (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
÷ Accounts receivable, net
= (109,896 + 113,828 + 102,346 + 96,428)
÷ 62,999 = 6.71
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a period of substantial revenue expansion accompanied by a gradual decline in receivables turnover efficiency.
- Revenue and Receivables Growth
- Revenues demonstrated a consistent upward trajectory, increasing from 68,011 million USD in March 2022 to 109,896 million USD by March 2026. Parallel to this growth, net accounts receivable rose from 34,703 million USD to 62,999 million USD over the same period. This indicates a proportional expansion of credit extended to customers as the scale of operations increased.
- Receivables Turnover Trends
- The receivables turnover ratio exhibited a general downward trend over the analyzed period. While the ratio peaked at 8.13 in September 2022, it experienced a decline toward 6.41 by December 2023. Although a temporary recovery to 7.14 occurred in March 2024, the ratio subsequently fluctuated, ending at 6.71 in March 2026. The overall shift from a peak above 8.0 to a range between 6.4 and 7.1 suggests a moderate softening in the velocity of receivables collection.
- Cyclical Patterns and Collection Efficiency
- A recurring seasonal pattern is observable, characterized by a dip in the turnover ratio during the December quarter of each year (reaching 7.03 in 2022, 6.41 in 2023, 6.69 in 2024, and 6.41 in 2025). These troughs coincide with the highest quarterly revenue peaks and the highest balances of net accounts receivable, suggesting that year-end sales growth is typically accompanied by an increase in outstanding receivables that outpaces the rate of collection.
- Operational Insight
- The long-term compression of the turnover ratio implies a lengthening of the average collection period. This suggests that as the volume of business grew, the efficiency of converting receivables into cash decreased slightly, potentially reflecting more lenient credit terms or slower payment behaviors from a larger customer base.
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Payables Turnover
Alphabet Inc., payables turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cost of revenues | 41,271) | 45,766) | 41,369) | 39,039) | 36,361) | 40,613) | 36,474) | 35,507) | 33,712) | 37,575) | 33,229) | 31,916) | 30,612) | 35,342) | 31,158) | 30,104) | 29,599) | ||||||
| Accounts payable | 16,852) | 12,200) | 10,546) | 8,347) | 8,497) | 7,987) | 7,049) | 6,092) | 6,198) | 7,493) | 5,803) | 5,313) | 4,184) | 5,128) | 6,303) | 4,409) | 3,436) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | 9.94 | 13.32 | 14.92 | 18.27 | 17.53 | 18.32 | 20.32 | 22.98 | 22.01 | 17.79 | 22.59 | 24.29 | 30.41 | 24.61 | 19.65 | 27.29 | 33.89 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Comcast Corp. | 3.12 | 3.16 | 2.97 | 3.06 | 3.17 | 3.27 | 3.16 | 3.04 | 3.10 | 2.96 | 2.97 | 3.00 | 3.01 | 3.05 | 3.13 | 3.23 | 3.16 | ||||||
| Meta Platforms Inc. | 2.91 | 4.07 | 4.37 | 3.14 | 3.65 | 3.92 | 3.79 | 8.78 | 7.00 | 5.35 | 6.08 | 8.44 | 6.90 | 5.06 | 6.01 | 5.82 | 7.25 | ||||||
| Netflix Inc. | 26.71 | 25.84 | 28.39 | 33.94 | 34.70 | 23.38 | 32.06 | 34.06 | 32.75 | 26.38 | 37.07 | 31.96 | 33.26 | 28.54 | 33.93 | 36.53 | 28.76 | ||||||
| Trade Desk Inc. | 0.25 | 0.21 | 0.21 | 0.20 | 0.21 | 0.18 | 0.18 | 0.17 | 0.18 | 0.16 | 0.18 | 0.17 | 0.18 | 0.15 | 0.16 | 0.16 | 0.17 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 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).
1 Q1 2026 Calculation
Payables turnover
= (Cost of revenuesQ1 2026
+ Cost of revenuesQ4 2025
+ Cost of revenuesQ3 2025
+ Cost of revenuesQ2 2025)
÷ Accounts payable
= (41,271 + 45,766 + 41,369 + 39,039)
÷ 16,852 = 9.94
2 Click competitor name to see calculations.
An analysis of the operating activity ratios indicates a significant and sustained decline in the payables turnover ratio between March 31, 2022, and March 31, 2026. This trend reflects a fundamental change in the relationship between the cost of revenues and the volume of outstanding accounts payable.
- Payables Turnover Trend
- The payables turnover ratio experienced a consistent contraction, falling from a high of 33.89 in March 2022 to 9.94 by March 2026. Although the ratio showed some volatility during 2022 and 2023, it entered a period of accelerated decline starting in late 2024, resulting in a total decrease of approximately 70% over the analyzed timeframe.
- Cost of Revenues Dynamics
- The cost of revenues demonstrated a steady upward trajectory, rising from 29,599 million USD in March 2022 to 41,271 million USD in March 2026. This growth reflects an expansion in operational scale, characterized by recurring seasonal spikes in the fourth quarter of each year.
- Accounts Payable Expansion
- The accounts payable balance grew substantially, increasing from 3,436 million USD in March 2022 to 16,852 million USD in March 2026. The most pronounced growth occurred in the final year of the sequence, where the balance increased sharply from 12,200 million USD in December 2025 to 16,852 million USD in March 2026.
- Operational Interpretation
- The decline in the turnover ratio is driven by the fact that accounts payable increased at a rate far exceeding the growth in the cost of revenues. This divergence suggests that the company has significantly extended the period it takes to pay its suppliers, thereby increasing its reliance on trade credit to finance short-term operations and improving its immediate cash position at the expense of supplier payment speed.
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Working Capital Turnover
Alphabet Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 213,753) | 206,038) | 173,947) | 166,216) | 162,052) | 163,711) | 157,541) | 161,995) | 165,471) | 171,530) | 176,310) | 168,788) | 161,985) | 164,795) | 166,109) | 172,371) | 177,853) | ||||||
| Less: Current liabilities | 111,188) | 102,745) | 99,550) | 87,310) | 91,654) | 89,122) | 80,803) | 77,913) | 76,997) | 81,814) | 86,295) | 77,709) | 68,854) | 69,300) | 65,979) | 61,354) | 61,948) | ||||||
| Working capital | 102,565) | 103,293) | 74,397) | 78,906) | 70,398) | 74,589) | 76,738) | 84,082) | 88,474) | 89,716) | 90,015) | 91,079) | 93,131) | 95,495) | 100,130) | 111,017) | 115,905) | ||||||
| Revenues | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | 4.12 | 3.90 | 5.18 | 4.71 | 5.11 | 4.69 | 4.43 | 3.90 | 3.60 | 3.43 | 3.30 | 3.18 | 3.06 | 2.96 | 2.82 | 2.51 | 2.33 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 3.41 | 3.00 | 5.24 | 4.92 | 3.02 | 2.48 | 2.71 | 3.03 | 3.02 | 2.53 | 2.65 | 3.04 | 4.33 | 3.59 | 3.32 | 3.54 | 3.13 | ||||||
| Netflix Inc. | 9.49 | 22.16 | 13.43 | 13.67 | 20.30 | 16.63 | 26.43 | — | 55.26 | 31.89 | 13.41 | 11.35 | 14.73 | 23.67 | 29.95 | 91.06 | 84.84 | ||||||
| Trade Desk Inc. | 1.51 | 1.45 | 1.31 | 1.27 | 1.18 | 0.99 | 1.04 | 1.09 | 1.13 | 1.08 | 0.98 | 0.97 | 1.00 | 0.87 | 0.91 | 0.91 | 0.92 | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | 54.74 | 45.26 | 420.20 | — | 3,308.88 | 112.96 | 41.96 | 25.38 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 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).
1 Q1 2026 Calculation
Working capital turnover
= (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
÷ Working capital
= (109,896 + 113,828 + 102,346 + 96,428)
÷ 102,565 = 4.12
2 Click competitor name to see calculations.
The financial performance from March 31, 2022, through March 31, 2026, is characterized by a simultaneous reduction in working capital and a steady increase in total revenues, resulting in a significant expansion of the working capital turnover ratio.
- Working Capital Trends
- A sustained downward trajectory in working capital is observed for the majority of the period, declining from 115,905 million US$ in March 2022 to a low of 70,398 million US$ by December 2024. This represents a period of lean operational liquidity management. However, a reversal occurs in late 2025, with working capital rising to 103,293 million US$ by December 2025 and stabilizing at 102,565 million US$ by March 2026.
- Revenue Growth Patterns
- Revenues exhibit a consistent growth trend, increasing from 68,011 million US$ in the first quarter of 2022 to 109,896 million US$ by the first quarter of 2026. Growth is marked by cyclical peaks, particularly in December quarters, indicating strong seasonal performance. The overall upward movement in revenue suggests expanding market reach and operational scaling.
- Working Capital Turnover Efficiency
- The working capital turnover ratio demonstrates a strong positive correlation with the decline in working capital and the rise in revenues. The ratio climbed steadily from 2.33 in March 2022 to a peak of 5.18 in June 2025, indicating a substantial increase in the efficiency of utilizing short-term assets and liabilities to generate sales. A subsequent correction is noted in late 2025 and early 2026, where the ratio moderated to 4.12, corresponding with the increase in working capital levels during that period.
The overall analysis indicates a strategic shift toward higher capital efficiency through 2024 and early 2025, followed by a period of capital accumulation toward the end of the observed timeframe. Despite the recent increase in working capital, the turnover ratio remains significantly higher than the baseline levels recorded in 2022, suggesting a permanently improved operational efficiency.
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Average Receivable Collection Period
Alphabet Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Receivables turnover | 6.71 | 6.41 | 6.75 | 6.75 | 7.05 | 6.69 | 6.92 | 6.97 | 7.14 | 6.41 | 7.24 | 7.46 | 7.90 | 7.03 | 8.13 | 7.79 | 7.79 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | 54 | 57 | 54 | 54 | 52 | 55 | 53 | 52 | 51 | 57 | 50 | 49 | 46 | 52 | 45 | 47 | 47 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Comcast Corp. | 41 | 41 | 39 | 38 | 38 | 40 | 42 | 40 | 39 | 41 | 39 | 39 | 37 | 38 | 36 | 36 | 37 | ||||||
| Meta Platforms Inc. | 30 | 36 | 33 | 34 | 31 | 38 | 34 | 35 | 34 | 44 | 37 | 38 | 34 | 42 | 35 | 35 | 35 | ||||||
| Trade Desk Inc. | 409 | 475 | 455 | 443 | 434 | 497 | 472 | 488 | 465 | 538 | 485 | 494 | 463 | 543 | 499 | 500 | 497 | ||||||
| Walt Disney Co. | 57 | 51 | 52 | 49 | 54 | 51 | 53 | 49 | 58 | 51 | 55 | 54 | 61 | 56 | 62 | 65 | 74 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 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).
1 Q1 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.71 = 54
2 Click competitor name to see calculations.
An analysis of the operating activity ratios between March 2022 and March 2026 reveals a general decline in the efficiency of receivable collections. The data demonstrates a consistent inverse correlation between the receivables turnover ratio and the average receivable collection period, indicating a gradual lengthening of the cash conversion cycle for outstanding invoices.
- Receivables Turnover
- The turnover ratio peaked at 8.13 in September 2022, representing the point of highest efficiency in collecting receivables during the period. Following this peak, a general downward trend is observed, with the ratio dropping to lows of 6.41 in December 2023 and December 2025. The period concludes with a ratio of 6.71 in March 2026, indicating that the company is converting its receivables into cash less frequently than it did in the first half of 2022.
- Average Receivable Collection Period
- The collection period shows a corresponding increase, moving from 47 days in March 2022 to 54 days by March 2026. The most efficient collection period was recorded in September 2022 at 45 days. Conversely, the collection period reached its maximum of 57 days in both December 2023 and December 2025. This expansion suggests a trend toward slower payment receipts from customers or a potential shift in credit terms offered to clients.
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Average Payables Payment Period
Alphabet Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | 9.94 | 13.32 | 14.92 | 18.27 | 17.53 | 18.32 | 20.32 | 22.98 | 22.01 | 17.79 | 22.59 | 24.29 | 30.41 | 24.61 | 19.65 | 27.29 | 33.89 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | 37 | 27 | 24 | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Comcast Corp. | 117 | 115 | 123 | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | ||||||
| Meta Platforms Inc. | 125 | 90 | 83 | 116 | 100 | 93 | 96 | 42 | 52 | 68 | 60 | 43 | 53 | 72 | 61 | 63 | 50 | ||||||
| Netflix Inc. | 14 | 14 | 13 | 11 | 11 | 16 | 11 | 11 | 11 | 14 | 10 | 11 | 11 | 13 | 11 | 10 | 13 | ||||||
| Trade Desk Inc. | 1,460 | 1,773 | 1,705 | 1,802 | 1,713 | 2,035 | 2,011 | 2,089 | 1,989 | 2,314 | 2,085 | 2,151 | 2,026 | 2,430 | 2,246 | 2,230 | 2,184 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 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).
1 Q1 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.94 = 37
2 Click competitor name to see calculations.
An analysis of the short-term operating activity reveals a significant and sustained increase in the time required to settle obligations with suppliers over the period from March 31, 2022, to March 31, 2026. This trend is characterized by a steady decline in the velocity of payables turnover and a corresponding extension of the payment cycle.
- Payables Turnover Ratio
- The payables turnover ratio demonstrates a clear downward trajectory. Starting at a high of 33.89 in March 2022, the ratio experienced volatility through 2023, peaking again at 30.41 in March 2023 before entering a consistent decline. By March 31, 2026, the ratio reached its lowest point of 9.94, indicating a substantial reduction in the frequency with which accounts payable are cleared throughout the year.
- Average Payables Payment Period
- The average payables payment period reflects an inverse relationship with the turnover ratio, showing a marked increase in the number of days taken to pay creditors. The period began at 11 days in March 2022 and remained relatively low through early 2023. However, a progressive expansion is observed from December 2023 (21 days) through the end of the period, culminating in a sharp increase to 37 days by March 31, 2026.
- Comparative Trend Analysis
- The data indicates an accelerating trend in payment extension during the final year of the observation. While the payment period fluctuated between 11 and 21 days for the majority of 2022 and 2023, the transition from 2024 to 2026 shows a shift toward longer credit terms, moving from 20 days in December 2024 to 37 days in March 2026. This suggest a strategic shift in working capital management or a change in supplier credit terms, effectively increasing the company's operational liquidity by delaying cash outflows.
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