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)
Fidelity National Information Services Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 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).
- Receivables Turnover
- The receivables turnover ratio demonstrates significant fluctuations over the observed periods. Initially, values ranged from approximately 12 to 30 times per year between early 2018 and 2021. Starting in 2022, there is a notable decline, dropping to levels between about 5.3 and 11.4 by early 2023. This downward trend indicates a slower collection of receivables, suggesting that the company may be taking longer to collect payments from customers in recent periods.
- Payables Turnover
- The payables turnover ratio shows a peak in mid-2018 to late 2019 with values reaching nearly 7 times, followed by a sharp decrease to about 1.25 at the end of 2019. Since then, it remains relatively stable but low, fluctuating between 1.3 and 1.77 up to the first quarter of 2023. This pattern implies that the company has been extending its payment terms to suppliers or delaying payments, and this trend has continued steadily in recent years.
- Working Capital Turnover
- The working capital turnover ratio exhibits erratic behavior with very high variability and missing values. A spike to over 90 times is observed in mid-2019, followed by values closer to 1 and large gaps in the data. The lack of continuous data and extreme fluctuations limit interpretation, but the sporadic high ratio could indicate unusually high sales volume relative to working capital during certain quarters.
- Average Receivable Collection Period
- This ratio, expressed in days, mirrors the inverse of the receivables turnover trend. Initially steady around 12 to 15 days up to mid-2019, the collection period increases to above 20 days during 2020 and continues to rise, reaching as high as 69 days in early 2023 before decreasing slightly to 36 days. This lengthening of the collection period signals slower receipt of cash from customers over time, which may impact liquidity.
- Average Payables Payment Period
- The average payables payment period is characterized by an exceptionally high value of 291 days at the end of 2018, marking a significant extension of supplier payment obligations. Following this, it reduces somewhat but remains elevated between approximately 170 and 280 days through 2019 to 2023. This suggests the company has systematically prolonged the time taken to pay its suppliers for an extended period, potentially as a cash management strategy.
Turnover Ratios
Average No. Days
Receivables Turnover
Fidelity National Information Services Inc., receivables turnover calculation (quarterly data)
| 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 | 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 | ||||||||||||||||||||||||||||
| Settlement receivables | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 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), 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 2023 Calculation
Receivables turnover
= (RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022
+ RevenueQ2 2022)
÷ Settlement receivables
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited moderate fluctuations from March 2018 to mid-2019, remaining generally within the range of approximately $2,050 million to $2,830 million. A notable increase occurred in the latter half of 2019, with revenues jumping to over $3,300 million by December 2019. Throughout 2020 and 2021, revenue maintained an upward trajectory, reaching a peak of approximately $3,672 million by the end of 2021. However, in 2022 and early 2023, revenue showed increased volatility with a general declining tendency, falling below $3,600 million by March 2023 after reaching interim highs around $3,700 million during the year.
- Settlement Receivables Patterns
- Settlement receivables figures were relatively stable through 2018 and early 2019, with values generally ranging between $280 million and $760 million. A sharp and persistent increase began in late 2019, surging markedly to approximately $1,217 million by year-end 2021. This upward momentum continued through 2022, culminating in a peak value near $2,738 million in March 2022, representing a significant accumulation of receivables. Thereafter, a pronounced decline occurred by March 2023, dropping to roughly $1,427 million, indicating partial recovery or collection of outstanding amounts.
- Receivables Turnover Ratios
- The receivables turnover ratio remained relatively high and stable in early periods, particularly around 24 to 30 in 2018 and early 2019, indicating efficient collection processes relative to receivables. Starting late 2019, the ratio declined sharply, plunging from above 16 in early 2020 to values as low as approximately 5.31 in March 2023. This trend suggests decreasing efficiency in collecting receivables, possibly correlated with the substantial increase in settlement receivables over the same period.
- Overall Financial Insights
- The data suggests that while revenue grew steadily through the earlier years, the substantial increase in settlement receivables, coupled with declining receivables turnover ratios, could point to challenges in collecting outstanding payments in the later periods. The significant rise in settlement receivables indicates an accumulation of owed amounts, which is further underscored by the drop in turnover ratio, reflecting delayed collection cycles or increased credit risk. The recent decline in settlement receivables by early 2023 may accommodate partial resolution of these collections pressures. Monitoring collection efficiencies alongside revenue streams will be critical to maintain financial health going forward.
Payables Turnover
Fidelity National Information Services Inc., payables turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||||||
| Settlement payables | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 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), 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 2023 Calculation
Payables turnover
= (Cost of revenueQ1 2023
+ Cost of revenueQ4 2022
+ Cost of revenueQ3 2022
+ Cost of revenueQ2 2022)
÷ Settlement payables
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Revenue
- The cost of revenue demonstrated a gradual upward trend from March 31, 2018, through the end of 2019, increasing from approximately $1,414 million to nearly $1,987 million. In 2020, costs fluctuated slightly but remained elevated, peaking towards the end of the year at about $2,109 million. The upward trajectory continued into 2021, reaching around $2,251 million by year-end. In 2022, the cost remained relatively stable, fluctuating marginally between approximately $2,148 million and $2,234 million. The first quarter of 2023 indicated a slight decline to roughly $2,169 million. Overall, the data suggests a consistent increase in cost of revenue over the multi-year period, with stabilization observed in the last two years.
- Settlement Payables
- Settlement payables exhibited significant volatility throughout the period. Initially, the payable amounts fluctuated between approximately $796 million and $972 million during 2018 and 2019. A substantial increase occurred in mid to late 2019, with settlement payables rising sharply to a peak of about $5,342 million by the fourth quarter of 2021. Following this peak, the figures displayed a slight decrease but remained at elevated levels above $5,000 million for most of 2022. The first quarter of 2023 recorded a marked decline to around $5,331 million after a prior peak exceeding $6,700 million in late 2022, indicating some reversion from extreme values. This pattern reflects variability likely due to timing or operational factors specific to settlement activities.
- Payables Turnover Ratio
- The payables turnover ratio data is limited, starting from the first quarter of 2019. Initially, ratios were relatively high and variable, with values such as 5.73 and 6.98 in early 2019. However, from late 2019 onwards, the ratio sharply declined to values fluctuating between 1.25 and 2.13. Over the subsequent quarters through 2023, the turnover ratio remained relatively stable, generally in the range of approximately 1.6 to 1.8, with occasional dips to around 1.31. This reduction and stabilization in payables turnover ratio indicate that the company has been taking longer to settle its payables consistently during this period compared to earlier in 2019.
- Summary
- Collectively, the financial metrics indicate a trend of increasing operational scale or expense persistence, as evidenced by the rising cost of revenue over time, with some leveling off more recently. In contrast, settlement payables showed substantial increases and high volatility, suggesting fluctuations in the company's short-term obligations or payment timing. The payables turnover ratio dropped markedly in 2019 and then remained steady at a lower level, signaling a shift toward slower payment cycles. This combination of trends may reflect strategic changes in working capital management or underlying business conditions affecting both costs and liabilities.
Working Capital Turnover
Fidelity National Information Services Inc., working capital turnover calculation (quarterly data)
| 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 | 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 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 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), 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 2023 Calculation
Working capital turnover
= (RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022
+ RevenueQ2 2022)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital figures exhibit significant volatility throughout the observed periods. Initially negative in the early quarters of 2018, working capital moved to positive territory in early 2019 but then sharply declined again in subsequent quarters, predominantly maintaining negative values. The largest negative positions appeared towards the end of 2019 and continuing through 2021 and 2022, indicating consistent challenges or strategic financial positioning affecting short-term liquidity. There are occasional brief recoveries to less negative or slightly positive values, but overall the trend shows a sustained negative working capital balance, with values mostly ranging from approximately -3,000 million to -4,800 million US dollars in recent quarters.
- Revenue
- Revenue demonstrates a generally positive and upward trend over the entire timeframe. Starting around 2,066 million US dollars in the first quarter of 2018, revenue incrementally increased, peaking above 3,600 million US dollars in several quarters of 2021 and 2022. There is some fluctuation with minor declines between quarters, but the overall trajectory points to growth in revenue generation. Notably, revenue crossed the 3,000 million mark permanently from late 2018 onward and maintained levels mostly above this threshold, evidencing expansion or sustained market demand.
- Working Capital Turnover Ratio
- The working capital turnover ratio is sporadically reported, with data available only for certain quarters, particularly in 2019. The recorded values show extremely wide fluctuations, for example, a high of 93.49 and another value near 1.01, as well as a later value around 27.03. These variations suggest periods of significant variability in how efficiently working capital is being utilized relative to sales, though the lack of continuous data limits precise trend analysis. The high ratios indicate some periods of efficient asset utilization, but the inconsistent measurements complicate a robust conclusion.
Average Receivable Collection Period
Fidelity National Information Services Inc., average receivable collection period calculation (quarterly data)
| 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 | 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 | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 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), 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 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio displays a fluctuating trend across the analyzed periods. Initially, values are missing before March 31, 2018. Starting from March 31, 2018, there is a peak at 29.98, followed by a decline to 24.32 and then another rise to 29.13 by September 30, 2018. Subsequently, a notable drop occurs in the final quarter of 2018 reaching 12.13, the lowest point in that year. Throughout 2019, the ratio fluctuates moderately, maintaining mid-teens to high teens levels, peaking at 18.96 in March 2021. Post-2021, a downward trend becomes evident with ratios descending from 17.77 in December 2021 to 5.31 at the end of March 2023, indicating a significant decrease in turnover efficiency in recent quarters.
- Average Receivable Collection Period
- The average receivable collection period inversely correlates with the receivables turnover ratio and shows an increasing trend over time. Initial data from early 2018 are missing, but from March 31, 2018, the period starts at 12 days, increasing to around 15 days by mid-2018, then fluctuating between 13 and 30 days by the end of 2018. Through 2019 and early 2020, the collection period remains relatively stable, roughly between 19 and 25 days. From 2021 onward, this duration gradually increases, reaching approximately 32 to 40 days in late 2022. A sharp rise is observed at the end of the first quarter of 2023, where the collection period spikes to 69 days before contracting back to 36 days. This increasing trend suggests a lengthening time for receivables to be collected, implying potential challenges in cash flow management or changes in credit policy.
- Overall Insights
- The data reveal weakening efficiency in receivables management over the observed timeframe. The decline in receivables turnover ratio alongside the extended average collection period indicates slower conversion of receivables to cash. The sharp spike in the average collection period at the beginning of 2023 warrants particular attention, as it reflects a significant delay in collection activities. Monitoring and addressing these trends would be critical to improving working capital management.
Average Payables Payment Period
Fidelity National Information Services Inc., average payables payment period calculation (quarterly data)
| 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 | 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 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 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), 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 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio reveals considerable volatility over the analyzed periods. Initial values from March to September 2018 are unavailable, but data from the end of 2018 onward show an initial increase from 5.73 to a peak of 6.98 by September 2019. This is followed by a pronounced decline to 1.25 in December 2019. Subsequently, the ratio stabilizes within the range of approximately 1.56 to 1.89 through the end of 2021, before a slight dip to 1.31 in March 2023. This pattern suggests a temporary acceleration in the frequency of payables turnover in mid-2019, followed by a period of reduced turnover speed which then stabilizes.
- Average Payables Payment Period
- The average payables payment period exhibits a mirror effect to the turnover ratio, expressing considerable fluctuations. Initial data from March to September 2018 are missing, but from the available data starting December 2018, there is a sharp increase from 64 days to 291 days by December 2019, indicating much slower payment cycles. Following this spike, the days stabilize in the range of roughly 197 to 228 days through the end of 2021, reflecting extended payment periods. The period then slightly decreases to 222 days by March 2023. The prolonged payment durations align with the lowered payables turnover ratio, suggesting a strategic change or external conditions affecting payment practices.
- Overall Insights
- The financial patterns indicate a period of accelerated payables turnover in mid-2019, succeeded by a sustained lengthening of the payment periods, as evidenced by the inverse relationship between turnover ratio and payment days. Such trends might imply changes in working capital management, supplier negotiations, or external economic factors influencing payment behavior. The stabilization phase after the fluctuations suggests a new operating norm in payables management has been established in recent years.