American Electric Power Co Inc (AEP)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,067,000 | 1,434,500 | 1,556,800 | 1,400,700 | 1,297,500 |
| Payables | US$ in thousands | 2,637,600 | 2,032,500 | 2,670,800 | 2,054,600 | 1,709,700 |
| Payables turnover | 2.30 | 0.71 | 0.58 | 0.68 | 0.76 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,067,000K ÷ $2,637,600K
= 2.30
The payables turnover ratio for American Electric Power Co Inc has exhibited some fluctuations over the years. It decreased from 0.76 in December 2020 to 0.68 in December 2021, reflecting a longer payment period to suppliers. The ratio further declined to 0.58 by December 2022, indicating a worsening trend in managing payables.
However, there was a notable improvement in the payables turnover ratio in December 2024, sharply increasing to 2.30. This substantial increase suggests that American Electric Power Co Inc is paying off its suppliers at a much faster rate compared to the previous years. Overall, the company's ability to manage its payables has varied, and the significant increase in 2024 indicates a positive shift towards more efficient management of supplier payments.
Peer comparison
Dec 31, 2024