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)
Turnover Ratios
Average No. Days
Meta Platforms Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 analysis of short-term operating activity indicates a significant divergence between the management of receivables and payables, leading to a substantial extension of the cash conversion cycle over the observed period.
- Receivables Management
- The receivables turnover remains relatively stable, fluctuating primarily between 8.34 and 12.30. This stability is mirrored in the average receivable collection period, which consistently ranges between 30 and 44 days. A slight improvement in efficiency is noted toward the end of the period, with the collection period reaching a minimum of 30 days by March 31, 2026, suggesting a disciplined approach to credit collection.
- Payables Management
- A pronounced downward trend is observed in the payables turnover, which declined from 7.25 in March 2022 to 2.40 by September 2026. Correspondingly, the average payables payment period has expanded dramatically, increasing from 50 days to 152 days. This shift indicates a strategic move to defer payments to suppliers, thereby increasing the company's available liquidity and utilizing trade credit as a primary source of short-term financing.
- Working Capital Efficiency
- Working capital turnover exhibits considerable volatility, with values ranging from a low of 2.48 to a peak of 5.24. While efficiency dipped between late 2022 and 2023, a recovery is evident in 2025 and 2026, where the ratio reached 4.25 by September 2026. This suggests an improved ability to generate revenue relative to the net investment in operating working capital.
Overall, the operating data reveals a strategy focused on maximizing cash retention. While the efficiency of collecting receivables has remained constant, the aggressive extension of the payables payment period has become the dominant driver of the company's short-term financial activity.
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Receivables Turnover
Meta Platforms Inc., receivables turnover calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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) | |||||||||||||||||||||||||
| Revenue | 64,601) | 60,801) | 56,311) | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | ||||||
| Accounts receivable, net | 22,716) | 21,752) | 17,470) | 19,769) | 17,297) | 16,561) | 14,514) | 16,994) | 14,700) | 14,505) | 13,430) | 16,169) | 12,944) | 12,511) | 11,044) | 13,466) | 11,227) | 11,525) | 11,390) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | 10.64 | 10.49 | 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 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | — | 6.45 | 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 | ||||||
| Comcast Corp. | 9.08 | 8.95 | 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 | ||||||
| Walt Disney Co. | 6.79 | 6.76 | 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: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Receivables turnover
= (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
÷ Accounts receivable, net
= (64,601 + 60,801 + 56,311 + 59,894)
÷ 22,716 = 10.64
2 Click competitor name to see calculations.
The financial trajectory from March 2022 through September 2026 is characterized by consistent expansion in both top-line revenue and the associated net accounts receivable balance. Revenue increased from 27,908 million USD in the first quarter of 2022 to 64,601 million USD by the third quarter of 2026, indicating a substantial growth in the scale of operations over the period.
- Revenue and Receivables Correlation
- A direct correlation is observed between the increase in revenue and the growth of net accounts receivable, which rose from 11,390 million USD to 22,716 million USD. The stability of the receivables turnover ratio, which generally fluctuated between 8.34 and 12.30, suggests that credit extension policies have remained largely consistent and have scaled proportionally with the overall growth of the business.
- Seasonal Cyclicality and Volatility
- A recurring pattern of efficiency decline is evident during the fourth quarter of each fiscal year. The receivables turnover ratio experienced notable dips in December 2022 (8.66), December 2023 (8.34), and December 2024 (9.68). This cyclicality indicates that while revenue peaks occur at year-end, there is a corresponding lag in collections or a strategic extension of credit terms during the holiday period.
- Operational Efficiency Trends
- An upward trend in collection efficiency is observable starting in 2025. The receivables turnover ratio reached its peak of 12.30 in March 2026, representing the highest level of turnover in the analyzed timeframe. This improvement suggests a refinement in credit management or a shift toward more accelerated payment cycles in the latter stages of the period, effectively offsetting the growth in the absolute volume of outstanding receivables.
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Payables Turnover
Meta Platforms Inc., payables turnover calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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 revenue | 13,369) | 11,330) | 10,218) | 10,906) | 9,206) | 8,491) | 7,572) | 8,838) | 7,375) | 7,308) | 6,640) | 7,696) | 6,210) | 5,945) | 6,108) | 8,336) | 5,716) | 5,192) | 6,005) | ||||||
| Accounts payable | 19,097) | 15,889) | 13,326) | 8,894) | 7,798) | 10,271) | 8,512) | 7,687) | 7,656) | 3,173) | 3,785) | 4,849) | 4,372) | 3,093) | 3,672) | 4,990) | 3,871) | 4,008) | 3,246) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 2.40 | 2.62 | 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 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | — | 8.61 | 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 | ||||||
| Comcast Corp. | 3.11 | 3.22 | 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 | ||||||
| Netflix Inc. | 28.52 | 30.22 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Payables turnover
= (Cost of revenueQ3 2026
+ Cost of revenueQ2 2026
+ Cost of revenueQ1 2026
+ Cost of revenueQ4 2025)
÷ Accounts payable
= (13,369 + 11,330 + 10,218 + 10,906)
÷ 19,097 = 2.40
2 Click competitor name to see calculations.
An analysis of the operating activity ratios reveals a significant shift in the management of short-term liabilities, characterized by a sustained decline in the payables turnover ratio alongside a substantial increase in both the cost of revenue and accounts payable balances.
- Cost of Revenue Trends
- The cost of revenue exhibits a consistent long-term upward trajectory, rising from 6,005 million USD in March 2022 to 13,369 million USD by September 2026. While there were periodic fluctuations in the first half of the period, the latter half shows an accelerated increase in operational costs, particularly from March 2025 onwards.
- Accounts Payable Dynamics
- Accounts payable balances experienced a dramatic expansion over the analyzed period. Starting at 3,246 million USD in March 2022, the balance grew to 19,097 million USD by September 2026. A notable inflection point occurred between June 30, 2024, and September 30, 2024, where balances more than doubled from 3,173 million USD to 7,656 million USD, signaling a fundamental change in the company's liability structure.
- Payables Turnover Analysis
- The payables turnover ratio demonstrates a clear downward trend, indicating a slowing rate of supplier payments. Between March 2022 and June 2024, the ratio remained relatively volatile but generally stayed within a higher range, peaking at 8.78. However, starting in September 2024, the ratio dropped sharply to 3.79 and continued a steady decline to 2.40 by September 2026.
- Operational Implications
- The divergence between the growth rate of accounts payable and the growth rate of the cost of revenue suggests a strategic shift toward extending payment terms with vendors. The reduction in the turnover ratio implies that the company is utilizing its trade credit more aggressively to finance operations, effectively increasing its cash conversion cycle by delaying outflows to suppliers.
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Working Capital Turnover
Meta Platforms Inc., working capital turnover calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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 | 119,900) | 125,475) | 109,765) | 108,722) | 73,118) | 73,613) | 90,227) | 100,045) | 91,067) | 76,431) | 75,330) | 85,365) | 78,378) | 69,560) | 52,483) | 59,549) | 58,315) | 55,987) | 59,265) | ||||||
| Less: Current liabilities | 63,011) | 56,379) | 46,753) | 41,836) | 36,958) | 37,305) | 33,890) | 33,596) | 33,330) | 27,004) | 28,101) | 31,960) | 30,531) | 29,921) | 25,381) | 27,026) | 22,687) | 22,217) | 21,086) | ||||||
| Working capital | 56,889) | 69,096) | 63,012) | 66,886) | 36,160) | 36,308) | 56,337) | 66,449) | 57,737) | 49,427) | 47,229) | 53,405) | 47,847) | 39,639) | 27,102) | 32,523) | 35,628) | 33,770) | 38,179) | ||||||
| Revenue | 64,601) | 60,801) | 56,311) | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | 4.25 | 3.30 | 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 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | — | 2.05 | 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 | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 53.97 | 28.15 | 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 | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | 54.74 | 45.26 | 420.20 | — | 3,308.88 | 112.96 | 41.96 | 25.38 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Working capital turnover
= (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
÷ Working capital
= (64,601 + 60,801 + 56,311 + 59,894)
÷ 56,889 = 4.25
2 Click competitor name to see calculations.
The financial performance between March 2022 and September 2026 is characterized by a consistent expansion in revenue coupled with significant volatility in working capital management, leading to fluctuating levels of operational efficiency.
- Revenue Growth Trends
- A sustained upward trajectory in revenue is observed, rising from 27,908 million US dollars in March 2022 to 64,601 million US dollars by September 2026. This growth indicates a substantial increase in the scale of operations over the analyzed period.
- Working Capital Dynamics
- Working capital exhibited considerable volatility. Following a period of gradual increase and a peak of 66,449 million US dollars in December 2024, a sharp contraction occurred in the first half of 2025, with levels dropping to approximately 36,000 million US dollars. This was followed by a rapid rebound, peaking at 66,886 million US dollars in December 2025 before moderating to 56,889 million US dollars by September 2026.
- Working Capital Turnover Interpretation
- The turnover ratio reflects three distinct phases. First, a period of relative stability occurred between March 2022 and December 2022, with ratios ranging from 3.13 to 3.59. Second, a downward trend emerged from June 2023 through December 2024, where the ratio declined to a low of 2.48, suggesting a decrease in the efficiency of working capital utilization relative to revenue growth. Third, a significant spike in efficiency was recorded in 2025, with the ratio reaching a peak of 5.24 in September 2025, coinciding with the sharp reduction in working capital. The period concluded with a stabilization of the ratio between 3.00 and 4.25 through September 2026.
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Average Receivable Collection Period
Meta Platforms Inc., average receivable collection period calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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 | 10.64 | 10.49 | 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 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | 34 | 35 | 30 | 36 | 33 | 34 | 31 | 38 | 34 | 35 | 34 | 44 | 37 | 38 | 34 | 42 | 35 | 35 | 35 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | — | 57 | 54 | 57 | 54 | 54 | 52 | 55 | 53 | 52 | 51 | 57 | 50 | 49 | 46 | 52 | 45 | 47 | 47 | ||||||
| Comcast Corp. | 40 | 41 | 41 | 41 | 39 | 38 | 38 | 40 | 42 | 40 | 39 | 41 | 39 | 39 | 37 | 38 | 36 | 36 | 37 | ||||||
| Walt Disney Co. | 54 | 54 | 57 | 51 | 52 | 49 | 54 | 51 | 53 | 49 | 58 | 51 | 55 | 54 | 61 | 56 | 62 | 65 | 74 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.64 = 34
2 Click competitor name to see calculations.
An analysis of short-term operating activity indicates a consistent pattern of seasonal volatility in receivables management, characterized by a recurring cycle of slowing collections toward the end of each calendar year followed by increased efficiency in the first quarter.
- Average Receivable Collection Period Trends
- The collection period exhibits a cyclical fluctuation, typically peaking in December of each year. The maximum collection period of 44 days occurred in December 2023, while the minimum of 30 days was reached in March 2026. A general trend toward improved collection efficiency is observable from 2024 through early 2026, as the duration required to convert receivables into cash shifted from a baseline of 34 to 35 days to a period low of 30 days.
- Receivables Turnover Dynamics
- The receivables turnover ratio demonstrates a strong inverse relationship with the collection period, fluctuating between a low of 8.34 in December 2023 and a peak of 12.30 in March 2026. The data reveals a gradual upward trajectory in turnover efficiency over the total period, suggesting that the rate at which receivables are collected has improved over time.
- Seasonal Performance Variance
- A distinct seasonal variance is identified, wherein turnover ratios consistently decline during the fourth quarter and rebound significantly by the end of the first quarter. This pattern indicates a predictable oscillation in liquidity, with credit extension or payment delays increasing toward the end of the calendar year and accelerating in the subsequent spring period.
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Average Payables Payment Period
Meta Platforms Inc., average payables payment period calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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 | 2.40 | 2.62 | 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 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 152 | 139 | 125 | 90 | 83 | 116 | 100 | 93 | 96 | 42 | 52 | 68 | 60 | 43 | 53 | 72 | 61 | 63 | 50 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | — | 42 | 37 | 27 | 24 | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | ||||||
| Comcast Corp. | 117 | 113 | 117 | 115 | 123 | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | ||||||
| Netflix Inc. | 13 | 12 | 14 | 14 | 13 | 11 | 11 | 16 | 11 | 11 | 11 | 14 | 10 | 11 | 11 | 13 | 11 | 10 | 13 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.40 = 152
2 Click competitor name to see calculations.
The operational activity analysis reveals a significant shift in the management of accounts payable between March 2022 and September 2026. There is a clear inverse correlation between the payables turnover ratio and the average payables payment period, characterized by a progressive and substantial slowdown in the frequency of supplier payments.
- Payables Turnover Trends
- The payables turnover ratio exhibited relative volatility but remained generally higher between March 2022 and June 2024, reaching a peak of 8.78 in June 2024. Following this peak, a sharp contraction is observed, with the ratio falling to 3.79 by September 2024. This downward trajectory persisted through 2025 and 2026, eventually reaching a minimum of 2.40 by September 2026, indicating a marked decrease in the velocity of payment cycles.
- Average Payables Payment Period Expansion
- The average time required to settle obligations with suppliers fluctuated within a range of 42 to 72 days throughout 2022 and 2023. A structural shift occurred in 2024, where the payment period transitioned from 42 days in June to 96 days by September. This expansion continued throughout 2025, frequently exceeding 100 days, and accelerated sharply in 2026, culminating in a peak of 152 days by September 2026.
- Liquidity and Cash Flow Implications
- The data indicates a strategic extension of payment terms over the analyzed period. The transition from a payment cycle averaging approximately 50 to 60 days in the initial years to a cycle exceeding 150 days by late 2026 suggests a deliberate increase in the utilization of trade credit. This trend effectively allows for greater retention of cash within the organization, leveraging accounts payable as a mechanism for short-term financing to enhance operational liquidity.
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