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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2008
- Price to Book Value (P/BV) since 2008
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Short-term Activity Ratios (Summary)
Warner Bros. Discovery Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Receivables Turnover
- The receivables turnover ratio exhibits a generally increasing trend from the first quarter of 2018 through the third quarter of 2021, rising from approximately 3.74 to a peak near 5.18. This indicates an improvement in the company's efficiency in collecting receivables over that period. However, the ratio experiences a marked decline in late 2021 and mid-2022, dropping to as low as 2.74 before partially recovering to 3.90 by the third quarter of 2022. This fluctuation suggests a period of reduced collection efficiency or changes in credit policies or customer payment behaviors during these recent quarters.
- Payables Turnover
- The payables turnover ratio shows some volatility over the analyzed periods. Starting at 9.59 in early 2018, it climbs steadily to a high of 13.34 by the end of 2018, indicating faster payment to suppliers. Following this peak, the ratio exhibits a general downward trend through 2019 and 2020, reaching lows around 8.25 to 9.35, implying slower payments. Data beyond mid-2021 is partially missing, but available figures in 2022 show values between 7.49 and 11.21, suggesting continued fluctuations in payment pacing.
- Working Capital Turnover
- The working capital turnover ratio demonstrates considerable volatility. Initially low at 0.85 in early 2018, the ratio spikes dramatically at the end of 2018 to an extreme value of approximately 177.93, followed by a rapid decline over subsequent quarters to more normalized levels between 3.2 and 7.16. The exceptionally high spike may reflect unusual accounting or operational events affecting working capital during that period. Since then, the ratio stabilizes generally below 5 until mid-2022, with an isolated high of 19.08 in one quarter, indicating sporadic variations in the efficiency of using working capital to generate sales.
- Average Receivable Collection Period
- This metric decreases from 128 days in the second quarter of 2018 to 71 days by late 2021, indicating an improving collection efficiency as the company reduces the time customers take to pay. However, in mid-2022, there is a notable increase to 133 days, suggesting a sudden deterioration in collections, followed by a reduction back to 94 days. This turnaround warrants attention as it may impact the company's cash flow.
- Average Payables Payment Period
- The average payables payment period decreases from 38 days in early 2018 to 27 days by the end of 2018, reflecting quicker payments to suppliers. Subsequently, it trends upward over 2019 and 2020, reaching approximately 44 days, indicating a slowing in payments that potentially improves cash retention. The period remains variable thereafter, with some increases in the payables period during mid-2022, reaching up to 49 days, suggesting an ongoing strategy to manage cash outflows more conservatively or potential supplier negotiations impacting payment timelines.
Turnover Ratios
Average No. Days
Receivables Turnover
Warner Bros. Discovery Inc., receivables turnover calculation (quarterly data)
| 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||
| Receivables, net | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Receivables turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Receivables turnover
= (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
÷ Receivables, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenues Trend
- Revenues exhibited a general upward trajectory from March 2017 through the end of 2019, increasing from 1,613 million USD to a peak of 2,874 million USD in the December 2019 quarter. This was followed by a decline in the March 2020 quarter, likely reflective of broader economic or market disruptions. However, from the June 2020 quarter onward, revenues showed a recovery trend, steadily increasing and reaching a high of 3,187 million USD in the December 2021 quarter. A notable decrease is observed in the June and September 2022 quarters, where revenues fell sharply to around 9,800 million USD for the six-month period combined, representing a significant drop compared to previous quarterly figures.
- Receivables, net Trend
- The net receivables followed a somewhat similar pattern to revenues but with notable fluctuations. Starting at 1,560 million USD in March 2017, receivables increased consistently up to the March 2018 quarter, reaching over 2,600 million USD. From mid-2018 to early 2020, the figures fluctuated mildly and then showed a gradual decrease through 2020 and 2021, ending at approximately 2,446 million USD in March 2022. A sharp decline is evident in the June and September 2022 quarters, where the aggregate receivables dropped significantly to around 7,000 million USD over two quarters, aligning with the revenue decrease in the same periods.
- Receivables Turnover Ratio Trend
- The receivables turnover ratio data begins in the March 2018 quarter. Initially, the ratio was relatively low (around 2.85-3.74) indicating slower collection of receivables. Through 2019 and early 2020, the ratio improved, peaking around 4.36, which shows enhanced efficiency in collecting receivables relative to sales. The turnover ratio remained relatively stable through 2020 and 2021, with values fluctuating slightly between 4.2 and 5.18. However, a significant decline occurred in 2022, with the ratio falling to as low as 2.74 in June and rising slightly to 3.9 in September. This indicates a slower conversion of receivables into cash, coinciding with the drop in revenues and receivables during the same period.
- Overall Insights
- The data reflects a generally growing business in terms of revenue and receivables from 2017 until the beginning of 2020, followed by a period of volatility mainly during and after 2020. The improved receivables turnover ratio through 2019 and 2020 suggests better management of receivables during this period. However, disruptions in 2022 led to substantial declines in revenues and net receivables, paired with a deterioration in receivables turnover efficiency. These changes may infer operational or market challenges impacting sales and cash collection processes in recent periods.
Payables Turnover
Warner Bros. Discovery Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Costs of revenues, excluding depreciation and amortization | ||||||||||||||||||||||||||||||
| Accounts payable | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Payables turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Payables turnover
= (Costs of revenues, excluding depreciation and amortizationQ3 2022
+ Costs of revenues, excluding depreciation and amortizationQ2 2022
+ Costs of revenues, excluding depreciation and amortizationQ1 2022
+ Costs of revenues, excluding depreciation and amortizationQ4 2021)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data indicates significant variations in costs of revenues (excluding depreciation and amortization), accounts payable, and payables turnover ratios over the observed periods.
- Costs of Revenues
- Costs of revenues displayed an increasing trend from March 2017 through December 2019, peaking at 1,037 million USD at the end of 2019. Afterward, the costs showed volatility, experiencing a notable decline to 810 million USD by June 2020, followed by a recovery and reaching 1,529 million USD in September 2021. However, the latest figures, notably for June and September 2022, present a substantial decrease to 6,625 million USD and 5,627 million USD, respectively, which suggests either a significant change in accounting representation or data aggregation. Prior to this abrupt rise, fluctuations around 900 to 1,100 million USD were typical, with consistent quarterly variability reflecting operational dynamics.
- Accounts Payable
- Accounts payable steadily increased from 200 million USD in the first quarter of 2017 to a peak of 521 million USD by June 2022. Intermediate quarters show general growth with occasional minor declines, such as between December 2019 (463 million USD) and June 2020 (367 million USD), possibly reflecting operational adjustments or payment schedule alterations during that period. The surge observed in the last two reported quarters aligns with the extraordinary jump in costs of revenues, indicating a possible correlation between increased obligations and payable management.
- Payables Turnover Ratio
- The payables turnover ratio demonstrated variability throughout the analyzed periods. Early data beginning in March 2018 shows ratios ranging from approximately 9.5 to 13.3, with a declining trend toward the end of 2019, reaching a low near 8.25. Following this, the ratio fluctuated in the 9 to 10 range until the end of 2020. Notably, by mid to late 2022, the turnover ratio declined further to values between 7.49 and 9.49, suggesting a slower rate of payments to suppliers relative to purchases and costs. This slower turnover may imply extended payment terms or delays in settling payables.
Overall, the data reflects operational expansion and subsequent instability in the costs and payables structure, with recent periods showing extraordinary figures that may require further contextual interpretation. The decrease in payables turnover ratios implies evolving payment practices or liquidity management challenges, while the growth in accounts payable values corresponds to the overall scale increase in operational costs.
Working Capital Turnover
Warner Bros. Discovery Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||
| Less: Current liabilities | ||||||||||||||||||||||||||||||
| Working capital | ||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Working capital turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Working capital turnover
= (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The working capital exhibited significant fluctuations over the observed quarters. Initially, it maintained positive values, reaching a peak of 8,120 million US dollars at the end of 2017. Following this, a downward trend was observed, with values declining sharply to as low as 54 million US dollars by September 2018. After this low point, working capital gradually increased through 2020 and 2021, achieving figures above 3,000 million US dollars. However, in 2022, a significant decrease occurred, with the working capital turning negative at -2,004 million US dollars by September 2022.
Revenues showed variability but overall retained a relatively stable range across the years. Starting at 1,613 million US dollars in March 2017, revenues increased to a peak of 3,187 million US dollars by December 2021. Notably, there is a sudden jump in reported revenue values for June and September 2022, reaching approximately 9,800 million US dollars, which may suggest an accounting or reporting anomaly or a change in reporting metrics or units in that period.
The working capital turnover ratio indicates the efficiency with which the company utilizes its working capital to generate revenues. The ratio values are missing or not reported for earlier periods but show high and irregular values from March 2018 onward. Specifically, the ratio jumped to an extremely high 177.93 in December 2018, which corresponds with the very low working capital at the same time, suggesting a temporary disconnect likely due to minimal working capital base or data inconsistencies. Following this peak, the turnover ratio stabilized to lower levels between 3 and 7 in subsequent quarters, reflecting more typical operational conditions. By mid-2022, the turnover ratio increased again sharply to 19.08, coinciding with the decline and negative turn in working capital, reinforcing issues in working capital management or unusual operational circumstances during that period.
- Working capital
- Demonstrated high volatility with an overall decline from early high levels to negative by late 2022.
- Revenues
- Remained largely stable with gradual growth until end 2021, followed by anomalous jumps in mid-2022.
- Working capital turnover
- Exhibited extreme spikes correlated with sharp decreases in working capital, then stabilized at moderate levels, and spiked again in 2022, indicating fluctuating efficiency and potential operational challenges.
In summary, the data reflects periods of instability in working capital management, especially notable in 2018 and again in 2022, while revenues remained progressively steady until unusual values appeared in the latest quarters. The working capital turnover ratios further highlight inconsistencies and potential operational or reporting issues worth further investigation.
Average Receivable Collection Period
Warner Bros. Discovery Inc., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- Over the observed periods starting from March 31, 2018, the receivables turnover ratio shows a general upward trend. Initially, the ratio was 3.74 and experienced a decline to a low of 2.85 in June 2018. From that point onward, it steadily increased, surpassing 4.0 by March 2019, and continued to improve, reaching a peak of 5.18 by September 2021. This indicates a strengthening efficiency in the company's ability to collect receivables over time. However, a notable decline occurred after peak performance, with the ratio dropping sharply to 2.74 by March 31, 2022, before partially recovering to 3.9 by September 30, 2022. This decrease may suggest challenges in collections or changes in credit policies during early 2022.
- Average Receivable Collection Period (Days)
- The average collection period exhibits patterns inverse to the receivables turnover ratio, as expected. Starting at 98 days in March 2018, it increased to a peak of 128 days in June 2018, reflecting a slower collection process. Subsequently, there was a consistent reduction in days, with values declining below 90 days from March 2019 onward and reaching a minimum of 71 days in September 2021. This trend suggests improvements in the company's cash conversion cycle and credit management efficiency. However, similar to the turnover ratio, there was a disruption in this trend containing an increase to 133 days by March 2022, indicating a significant slowdown in collections that aligns with the declining turnover ratio during the same period. By September 2022, the period improved to 94 days but remained elevated compared to the recent low.
- Overall Insights
- The data reveals an effective management of receivables over most of the analyzed timeframe, with steadily increasing turnover ratios and decreasing collection periods, indicative of improved operational efficiency. The sharp reversals in early 2022, evidenced by a reduced turnover ratio and an increased collection period, suggest external or internal factors affecting receivables management during this period. The partial recovery following this downturn suggests some mitigation actions or market recovery impacting receivables cycle positively.
Average Payables Payment Period
Warner Bros. Discovery Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio begins being recorded as of March 31, 2018, at 9.59 and generally rises through the end of 2018, peaking at 13.34 in December 2018. This indicates an acceleration in payment frequency during that year. However, starting in 2019, there is a gradual decline in the ratio, reaching a low of 8.25 in March 2020. The ratio then slightly recovers and stabilizes around 9 to 10 through the end of 2020 and into the early part of 2021, before data become sparse. In the most recent period available, September 2022, the ratio further declines to 7.49 but increases again to 9.49 by December 2022. Overall, the ratio shows volatility with a notable peak in late 2018 and a general downward trend thereafter with intermittent recoveries.
- Average Payables Payment Period (Number of Days)
- The average payment period for payables exhibits an inverse pattern relative to the payables turnover ratio, reflecting the expected relationship. Starting at 38 days in March 2018, payment periods drop to a low of 27 days in December 2018, corresponding with the peak payables turnover ratio at that time. Subsequently, the payment period increases gradually, reaching 44 days by March 2019, indicating slower payment cycles. Periods fluctuate between 36 and 40 days through 2020 and early 2021, before some missing data interrupts the series. Late 2021 and 2022 data show an increase in payment days, peaking at 49 days in September 2022 before falling back to 38 days in December 2022. This suggests a trend toward elongated payment cycles in recent periods, which may highlight changes in working capital management or supplier negotiation terms.
- Summary of Trends and Insights
- The financial data reveal that in the initial periods recorded, the company's payables turnover ratio oscillated significantly, exhibiting a peak period of more rapid payments at the end of 2018 followed by a decline and stabilization phase. Correspondingly, the average payment period decreased to its shortest point when turnover peaked and lengthened as turnover declined. The increase in the average payment period in 2022 may indicate a strategic decision to extend payables payment duration, potentially to conserve cash or optimize liquidity in a changing economic environment. The fluctuations in payables metrics highlight active adjustments in the company’s vendor payment practices over the analyzed quarters.