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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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Short-term Activity Ratios (Summary)
Expedia Group Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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).
The analysis of the quarterly financial indicators reveals notable fluctuations and trends in the company's efficiency and liquidity management over the observed periods.
- Receivables Turnover
- The receivables turnover ratio exhibits moderate variability from early 2018 through 2019, generally fluctuating between approximately 4.0 and 5.2. However, a significant surge is observed in 2020, with the ratio peaking above 9.0 in mid-2020, indicating an accelerated collection of receivables during that year. Following this peak, the ratio declines in 2021 and early 2022, stabilizing around 5.5, suggesting a return towards pre-2020 collection efficiency levels but still above some earlier periods.
- Payables Turnover
- The payables turnover ratio remains relatively stable and low (around 1.0 to 1.2) through 2018 and 2019, suggesting a slower rate of paying off suppliers. Starting in 2020, a pronounced increase occurs with ratios climbing above 3.0, reaching nearly 4.0 in mid-2020. This indicates a shift towards faster payment cycles during this period. The ratio then diminishes back to levels closer to the earlier range by 2021 and early 2022, reflecting a normalization in payment behavior.
- Working Capital Turnover
- Data on working capital turnover is available only for the latter part of the observed timeframe, primarily during 2020 and parts of 2021. Here, an extraordinary spike is evident, with turnover ratios escalating from around 6.4 in mid-2020 to an exceptional peak of above 68.0 in late 2020, indicative of significantly enhanced efficiency in utilizing working capital during that quarter. The limited data prevent further comprehensive trend analysis, but these values suggest a strategic shift or operational adjustment focusing on working capital optimization.
- Average Receivable Collection Period
- The average number of days to collect receivables shows a generally decreasing trend during 2018, improving from 79 days to about 70 days by year-end. Contrarily, in 2019, collection periods lengthen, peaking near 91 days mid-year, indicating slower receivables turnover. In 2020, a marked improvement is evident, with collection days dropping sharply to around 40 days, aligning with the elevated receivables turnover ratios. However, this trend reverses in 2021, with collection days increasing once again to above 85, before slightly improving in early 2022.
- Average Payables Payment Period
- The average days taken to pay suppliers remain very high throughout 2018 and 2019, generally fluctuating around 320 to 360 days, suggesting extended payment terms or delays. During 2020, a substantial reduction occurs, with payment periods dropping dramatically to as low as 92 days mid-year, indicating faster payments or possibly altered supplier arrangements. The payment periods then partially rebound in 2021, extending again towards 320 days, but exhibit a decreasing pattern moving into early 2022.
In summary, the company demonstrated significant changes in its financial cycle metrics around 2020, characterized by faster collection of receivables and accelerated payments to suppliers, as well as exceptional working capital turnover efficiency. These may reflect operational adjustments responding to external or internal factors. Post-2020 data indicates a gradual return or normalization towards prior patterns but still showing some beneficial improvements compared to earlier years. Monitoring these trends will be important to assess the ongoing effectiveness of working capital management strategies.
Turnover Ratios
Average No. Days
Receivables Turnover
Expedia Group Inc., receivables turnover calculation (quarterly data)
| 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) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Accounts receivable, net of allowance | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2022 Calculation
Receivables turnover
= (RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021
+ RevenueQ2 2021)
÷ Accounts receivable, net of allowance
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue exhibited a generally upward trajectory from March 2018 to September 2019, peaking at 3,558 million USD. Subsequently, it declined through December 2019 and experienced a sharp drop in the first half of 2020, reaching a low of 566 million USD in June 2020. Thereafter, revenue partially recovered, showing fluctuations but not returning to pre-pandemic levels by March 2022, where revenue stood at 2,249 million USD.
- Accounts Receivable Pattern
- Accounts receivable, net of allowance, showed an increasing trend from March 2018 to June 2019, reaching a peak of 2,893 million USD. Following this, there was a decline towards the end of 2019. A significant reduction occurred in 2020 correlating with revenue declines, with the lowest value of 701 million USD at December 2020. From early 2021 onwards, accounts receivable showed a gradual increase, reaching 1,736 million USD by March 2022, yet still below earlier peaks.
- Receivables Turnover Analysis
- Receivables turnover fluctuated between 4.01 and 5.22 during the periods up to December 2019, indicating moderate efficiency in collection. Notably, in 2020, the ratio increased sharply, peaking at 9.06 in June 2020, which may suggest accelerated collection efforts or lower credit sales during reduced revenue periods. The turnover rate moderated again in 2021 and early 2022, with a range of approximately 4.01 to 6.8, reflecting a return to more normalized collection cycles though still volatile.
- Overall Financial Insights
- The financial data indicates that the company faced significant challenges during 2020, likely due to external disruptions impacting revenue and receivables. The rapid increase in receivables turnover during this period suggests an emphasis on efficient cash collection. Recovery phases are marked by gradual revenue improvement and corresponding increases in accounts receivable, but without fully regaining pre-disruption levels by early 2022. The patterns imply an adaptive response to fluctuating market conditions with cautious credit management.
Payables Turnover
Expedia Group Inc., payables turnover calculation (quarterly data)
| 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 revenue, exclusive of depreciation and amortization | |||||||||||||||||||||||
| Accounts payable, merchant | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Amazon.com Inc. | |||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2022 Calculation
Payables turnover
= (Cost of revenue, exclusive of depreciation and amortizationQ1 2022
+ Cost of revenue, exclusive of depreciation and amortizationQ4 2021
+ Cost of revenue, exclusive of depreciation and amortizationQ3 2021
+ Cost of revenue, exclusive of depreciation and amortizationQ2 2021)
÷ Accounts payable, merchant
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in three key areas: cost of revenue excluding depreciation and amortization, accounts payable to merchants, and the payables turnover ratio.
- Cost of Revenue, Exclusive of Depreciation and Amortization
-
This metric exhibited a relatively stable pattern from early 2018 through the end of 2019, fluctuating slightly within the range of approximately 476 to 548 million US dollars. Notably, a significant decline is evident starting from the first quarter of 2020, dropping sharply to a low point by the last quarter of 2020 (287 million US dollars). Subsequently, there is a moderate recovery observed through 2021, though values remain below those seen in the pre-2020 period, with a modest decrease again in early 2022. This downturn corresponds to a disruption period, followed by gradual improvement but not a full return to previous levels.
- Accounts Payable, Merchant
-
Accounts payable to merchant figures demonstrate an overall upward trend from 2018 to the end of 2019, generally ranging between about 1,700 and 1,900 million US dollars. However, there is a pronounced drop beginning in the first quarter of 2020, with balances falling sharply to a trough in the middle of 2020 (approximately 531 million US dollars). This low level persists briefly but then rebounds significantly over the subsequent quarters, rising steadily through 2021 and early 2022, recovering to levels approaching or exceeding the pre-2020 figures. This pattern aligns with a temporary constraint or adjustment in payment cycles, followed by normalization and even expansion of payable obligations.
- Payables Turnover Ratio
-
The payables turnover ratio remained relatively stable and close to 1 during 2018 and 2019, indicative of a consistent payment pace relative to purchases. Starting in the first quarter of 2020, the ratio surged dramatically, peaking around mid-2020 with a value nearing 4, signaling significantly faster payments to merchants during the height of the disruption. This elevated turnover ratio gradually diminished across 2020 and 2021, aligning more closely with historical levels by the end of 2021 and early 2022. Such fluctuations in the turnover ratio suggest temporary changes in payment policies or cash flow management in response to external events, followed by a return to standard operating procedures.
In summary, the data indicates a pronounced impact beginning in early 2020, characterized by sharp reductions in both cost of revenue and accounts payable, accompanied by accelerated payments to vendors as reflected in the turnover ratio. This phase was followed by gradual recovery trends in accounts payable and cost of revenue, accompanied by normalization of payment velocity. The overall patterns reveal a period of operational adjustment, likely in response to external challenges, with progressive stabilization over the subsequent quarters.
Working Capital Turnover
Expedia Group Inc., working capital turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Amazon.com Inc. | |||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2022 Calculation
Working capital turnover
= (RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021
+ RevenueQ2 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrated a seasonal pattern with generally higher values in the second and third quarters of each year from 2018 through 2019, peaking at 3,558 million USD in Q3 2019. A significant decline occurred commencing in Q1 2020, reaching a low of 566 million USD in Q2 2020, corresponding likely to external adverse conditions affecting business operations. A recovery is observed thereafter, with revenue increasing steadily through 2021 and stabilizing around 2,200 to 3,000 million USD by the beginning of 2022, but not yet reaching pre-2020 levels consistently.
- Working Capital Analysis
- Working capital remained negative throughout most of the period from 2018 to early 2020, indicating the company operated with current liabilities exceeding current assets. The values fluctuated moderately, generally hovering between -2,500 million USD and -3,000 million USD. Notably, from Q2 2020 onwards, working capital turned positive, peaking at 1,099 million USD in Q3 2020, suggesting improved liquidity or changes in working capital management. However, this positive trend was short-lived, and working capital dipped back into negative territory from Q1 2021 to Q1 2022 with values declining progressively, reaching -1,322 million USD by Q1 2022. This reversal may indicate renewed liquidity pressures or changes in asset/liability composition.
- Working Capital Turnover Ratios
- Working capital turnover ratios were not reported before Q3 2020. Starting Q3 2020, ratios are presented as 8.47, 6.39, 22.8, and 68.32 for four consecutive quarters. These elevated turnover ratios indicate efficient utilization of working capital to generate revenue during this period. The sharp increase to 68.32 in Q4 2020 suggests an exceptional level of sales relative to the working capital base, potentially due to the low or positive working capital levels combined with recovering revenues.
- Overall Insights
- The data suggest significant operational impacts beginning in early 2020, with revenue sharply declining and an unusual shift in working capital from a sustained negative position to a brief positive swing. The working capital turnover improvements during the latter part of 2020 indicate that the company adapted to new conditions by improving working capital efficiency. However, the reversion of working capital back to negative readings in 2021 and early 2022 underscores ongoing volatility in liquidity management. Revenue recovery through 2021 signals stabilization but with fluctuations, pointing to a cautious environment. The patterns imply a strategic focus on working capital management amid fluctuating market and operational challenges.
Average Receivable Collection Period
Expedia Group Inc., average receivable collection period calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrated relatively stable values between March 2018 and December 2019, fluctuating in a range from approximately 4.0 to 5.2 times. A sharp increase occurred starting in the first quarter of 2020, peaking notably in the second quarter of 2020 at 9.06 times. This elevated turnover persisted throughout 2020 but declined again in 2021, returning to values near the 4.0-6.8 range by early 2022.
- Average Receivable Collection Period
- The average collection period exhibited a somewhat inverse pattern to the receivables turnover ratio. From early 2018 to the end of 2019, the collection days fluctuated between approximately 70 and 91 days, indicating a moderate time to collect receivables. This period notably shortened drastically in 2020, reaching a minimum of 40 days in the second quarter. Following this sharp improvement in collection efficiency, the period lengthened again in 2021, with collection days rising back towards or exceeding levels observed before 2020, but with some reduction by March 2022.
- Overall Insights
- The data suggests a period of improved receivables management efficiency through 2020, likely reflecting operational changes or external factors affecting collection practices during that year. The substantial increase in turnover and decrease in collection days during 2020 implies quicker conversion of receivables to cash. However, the reversal in 2021 and early 2022 towards longer collection periods and lower turnover ratios indicates a relaxation of these improvements or changing business conditions impacting receivables management. The fluctuations highlight responsiveness to changing operational or market conditions over the analyzed period.
Average Payables Payment Period
Expedia Group Inc., average payables payment period calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Amazon.com Inc. | |||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio demonstrated a relatively stable pattern from March 2018 through December 2019, fluctuating between 1.00 and 1.16. This suggests a consistent frequency in settling payables during this period. However, a significant spike is observed in early 2020, with the ratio rising sharply to 2.65 in March 2020 and peaking at 3.96 in June 2020, indicating a much faster payables turnover during these quarters. Following this peak, the ratio gradually decreased through 2020 into 2021, reaching around 1.12-1.16 toward the end of 2021 and early 2022, indicating a return toward earlier levels but still slightly elevated compared to the pre-2020 period.
- Average Payables Payment Period
- The average payables payment period initially ranged between approximately 316 and 365 days from early 2018 to late 2019, reflecting extended payment durations consistent with the payables turnover ratio. In 2020, a dramatic reduction occurred, with the payment period dropping to as low as 92 days in June 2020, corresponding inversely to the spikes in payables turnover during the same timeframe. This suggests the company significantly accelerated its payment cycle in response to the conditions prevailing in 2020. Subsequent quarters from late 2020 through early 2022 show a progressive increase in days payable outstanding, climbing back to a range around 298-326 days, though not fully returning to the pre-2020 high levels. This indicates a relaxation of the expedited payment terms, moving back towards the longer payment cycles observed prior to 2020 but maintaining somewhat shorter periods overall.
- Overall Trend and Insights
- The data reveal a pronounced disruption occurring in 2020, marked by a swift increase in payables turnover and a corresponding reduction in the average payment period. This suggests a strategic shift towards quicker payments, possibly reflecting liquidity management decisions or changes in vendor relationships during that period. Following this unusual spike, the payment behavior appeared to stabilize but at levels that suggest a moderate acceleration in payment practices relative to the earlier years. This pattern points to a potential ongoing adjustment in financial operations post-2020, with the company balancing between extending payables for working capital management and maintaining timely payments.