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)
Meta Platforms Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 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).
- Receivables Turnover
- The receivables turnover ratio displays a fluctuating but generally high range between approximately 7.58 and 11.74 over the periods analyzed. After an initial data gap, the ratio shows an increase from 7.58 in March 2021 to peaks near or above 10 in various quarters including June 2022, December 2022, and June 2025. This suggests consistent efficiency in collecting receivables, with some seasonal or cyclical variation.
- Payables Turnover
- The payables turnover ratio demonstrates significant volatility with sharp fluctuations. Initially, it rose from 12.54 in March 2021 to a peak of 20.92 in June 2021 but then declined markedly to values around 3.14 to 6.9 in more recent quarters. The later periods, particularly from March 2024 onward, reflect a noticeable decrease in payables turnover, indicating slower payments to suppliers.
- Working Capital Turnover
- The working capital turnover ratio shows an overall increasing trend from 1.42 in March 2021 to a peak of 4.92 in June 2025. There is evident growth in the efficiency with which working capital is utilized, despite some quarter-to-quarter fluctuations. This suggests a strengthening in the ability to generate sales from working capital over the time frame.
- Average Receivable Collection Period
- The average receivable collection period consistently varies between 31 and 48 days, with a general tendency to improve over time (i.e., decrease in days). The lowest periods around 31-34 days in recent quarters indicate enhanced collection practices or credit policy management resulting in quicker conversion of receivables into cash.
- Average Payables Payment Period
- The average payables payment period demonstrates considerable expansion over the periods, rising sharply from 17 days in June 2021 to over 100 days in the last quarters recorded. This indicates a substantial lengthening of time taken to settle payables, which may affect supplier relationships but could also be a strategic measure to improve cash flow.
Turnover Ratios
Average No. Days
Receivables Turnover
Meta Platforms Inc., receivables turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Receivables turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue displays a generally upward trajectory over the observed periods. Starting from approximately 17,737 million US dollars in Q1 2020, it reached 28,071 million by Q4 2020, marking a notable increase within the year. Although minor fluctuations are observed, revenue continued to grow, culminating in a significant rise to 40,112 million in Q4 2023. Subsequent quarters through mid-2025 indicate sustained growth, with revenue peaking periodically around 48,386 million US dollars by Q2 2025. This pattern reflects considerable expansion and consistently strong performance across the time frame.
- Accounts Receivable, Net Trends
- Accounts receivable, net, also exhibits an increasing trend over time, rising from 7,289 million US dollars in Q1 2020 to a high of 16,169 million by Q4 2023. There are some periods of relative stabilization and mild decreases, notably between early 2022 and mid-2023, but overall, the volume of receivables grows alongside revenue. This suggests increased sales on credit, which is typical for a growing business, but requires monitoring for potential collection risks as the balance expands.
- Receivables Turnover Ratio
- The receivables turnover ratio shows variability but generally remains within a range suggesting moderate efficiency in collecting receivables. Starting from 7.58 in Q4 2020, the ratio improves notably, reaching peaks above 10 in several quarters, indicating faster collection relative to sales. However, intermittent declines to approximately 8.3 to 8.6 in some quarters suggest occasional slowdowns in collection efficiency. The ratio generally maintains above 9 in most recent quarters, peaking at 11.74 in Q2 2025, which implies enhanced credit management and cash flow realization towards the end of the period.
- Overall Financial Indicators
- The parallel growth in revenue and accounts receivable accompanied by generally stable to improving receivables turnover ratios indicates effective growth management. The company has expanded its sales while maintaining or improving its ability to convert receivables into cash. However, the intermittent dips in turnover ratios highlight areas for ongoing attention to credit and collections processes to sustain liquidity. The positive trend in these metrics collectively signals robust operational performance and sound working capital management.
Payables Turnover
Meta Platforms Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Payables turnover
= (Cost of revenueQ2 2025
+ Cost of revenueQ1 2025
+ Cost of revenueQ4 2024
+ Cost of revenueQ3 2024)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Revenue
- The cost of revenue demonstrates an overall upward trend from March 2020 to June 2025, rising from 3,459 million USD to 8,491 million USD. There are fluctuations within this period, notably a peak in December 2022 at 8,336 million USD, followed by a decline in early 2023, then generally increasing again toward the end of the timeline. The significant growth indicates increasing expenses related to producing goods or services over time, which could reflect expansion or rising input costs.
- Accounts Payable
- Accounts payable values show a generally increasing trend from 829 million USD in March 2020 to 10,271 million USD in June 2025, indicating the company is taking on larger short-term liabilities over time. There is a particularly rapid rise between June 2020 and December 2021, from 920 million USD to 4,083 million USD, and another notable jump between September 2024 and June 2025, surpassing previous levels. Some volatility is observed in intermediate quarters but the overall pattern suggests growth in obligations to suppliers or creditors.
- Payables Turnover Ratio
- The payables turnover ratio, provided from March 2021 onward, generally declines over the observed periods, starting at 12.54 and decreasing to 3.14 by June 2025. This declining trend indicates the company is taking longer to pay off its suppliers compared to previous years. The ratio experiences some variability, with minor increases between mid-2021 and mid-2023, but the overall direction is downward, suggesting a lengthening of the payment cycle or increasingly favorable credit terms from suppliers.
- Summary of Trends
- The financial data points to a scenario where the company is experiencing higher costs associated with revenue generation while simultaneously increasing its accounts payable balances. The decreasing payables turnover ratio aligns with this, reflecting a slower payment rate to suppliers. These dynamics may indicate strategic cash flow management, potentially aimed at preserving liquidity amid rising operational demands. However, the large increase in both costs and payables warrants further analysis to assess impact on working capital and supplier relationships.
Working Capital Turnover
Meta Platforms Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Working capital turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibited a fluctuating trend over the period analyzed. Initially, there was an increase from US$54,280 million in March 2020 to a peak of US$65,823 million in June 2021. Subsequently, a notable decline occurred, reaching a low point of US$27,102 million by March 2023. Following this trough, working capital partially recovered, peaking again at US$66,449 million by June 2025 before falling sharply to US$36,308 million in June 2025. The volatility suggests variable management of current assets and liabilities across quarters.
- Revenue
- Revenue showed a general upward trajectory, albeit with some oscillations. Starting at US$17,737 million in March 2020, revenue rose with some seasonal variations to US$33,671 million by December 2021. After a dip in early 2022, revenues resumed growth, reaching a peak of US$48,386 million in March 2025 before a small subsequent decline to US$47,516 million in June 2025. This overall increase indicates a positive growth trend in business activities over the observed timeframe.
- Working Capital Turnover Ratio
- The working capital turnover ratio, which measures the efficiency of revenue generation from working capital, started to be recorded from December 2020. It showed a rising trend from 1.42 in December 2020 to a high of 4.33 in June 2023. Thereafter, the ratio declined to 2.48 in June 2025, with some recovery to 4.92 in the last recorded quarter. This pattern implies fluctuations in operational efficiency, with periods of improved revenue utilization of working capital followed by phases of reduced efficiency.
- Overall Insights
- The interplay between working capital and revenue growth suggests the company has been managing its short-term resources dynamically in response to operational needs. The relatively high variability in working capital contrasts with the generally increasing revenue, indicating changes in asset and liability management strategies. The working capital turnover ratio reflects this dynamic, showing periods where the company extracted greater revenue per unit of working capital, interspersed with less efficient intervals. These trends highlight ongoing adjustments possibly linked to market conditions, investment in operations, or shifts in payment terms with customers and suppliers.
Average Receivable Collection Period
Meta Platforms Inc., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables turnover
- The receivables turnover ratio shows a generally stable pattern with moderate fluctuations from March 31, 2020, through June 30, 2025. Starting from 7.58 in the first available quarter (March 31, 2020), it increased to a peak near 10.63 around the first quarter of 2023 and maintained values close to 10 or above in several quarters afterward. The ratio exhibits some decline in specific quarters such as March 31, 2022, and December 31, 2023, where it fell to around 8.4 and 8.34 respectively, but subsequently rebounded. Overall, the trend suggests consistent efficiency in collecting receivables with a tendency toward improvement over the period analyzed.
- Average receivable collection period
- The average receivable collection period, expressed in days, inversely corresponds with the receivables turnover ratio and exhibits a declining trend indicative of improving collection efficiency. The period started at 48 days in the earliest available data point, then reduced to a low of 34–35 days in multiple quarters between mid-2022 and mid-2024. Occasional increases back up to the low 40s occur intermittently, signaling short-term variations in collection speed. The most recent figures reflect a collection period around 31 to 34 days, marking a continued improvement compared to earlier data points.
- Summary of trends
- The data indicates a positive overall trend in receivables management, as evidenced by rising receivables turnover and decreasing collection periods. This improvement may reflect enhanced credit policies, more effective collection efforts, or changes in customer payment behavior. Despite some episodic variability, the consistency of the receivables turnover near or above 10 and the collection period at or below approximately 35 days in recent quarters is indicative of strong operational performance in receivables management.
Average Payables Payment Period
Meta Platforms Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits substantial fluctuation over the periods analyzed. Starting with a relatively high ratio of 12.54 at the earliest recorded date, the ratio increased markedly to 20.92 and 20.49 before experiencing a significant decline to 9.8. Following this drop, the ratio continued a downward trend, reaching lower values around 3.14 by the latest period in June 2025. The pattern indicates initial improvements in turnover efficiency, followed by a consistent deterioration in the ability to pay off payables rapidly in later quarters.
- Average Payables Payment Period
- The average payables payment period, measured in days, shows an inverse trend compared to the payables turnover ratio. It begins around 29 days and decreases to 17 and 18 days, paralleling the initial high turnover ratios. Subsequently, there is a steady increase in the payment period, peaking at 116 days by June 2025. This reflects a lengthening in the time taken to settle payables, suggesting a shift towards slower payment practices or possibly changes in supplier terms or cash management strategies.
- Relationship and Insights
- The inverse relationship between payables turnover and the average payment period is consistent with financial theory, whereby a lower turnover ratio corresponds to a longer payment period. The sharply declining payables turnover ratio combined with an increasing average payment period across the last several years suggests that the entity has progressively extended its payables duration. This could indicate efforts to optimize cash flow by delaying payments, though it may also reflect potential challenges in maintaining shorter payment cycles. The trend warrants further investigation into underlying causes such as changes in supplier negotiations, liquidity conditions, or operational cash flow management.