American Electric Power Company Inc (AEP)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	760,800	894,600	918,400	1,004,400	1,027,400	950,000	918,700	851,900	833,200	834,400	811,200	774,500	764,000	811,900	810,900	795,500	768,200	1,008,900	964,200	2,318,700
Payables	US$ in thousands	2,032,500	2,258,600	2,433,900	2,269,300	2,670,800	2,240,200	2,198,200	1,694,300	2,054,600	1,597,100	1,641,600	1,703,900	1,709,700	1,659,600	1,628,000	1,593,400	2,085,800	1,766,800	1,689,000	1,497,200
Payables turnover		0.37	0.40	0.38	0.44	0.38	0.42	0.42	0.50	0.41	0.52	0.49	0.45	0.45	0.49	0.50	0.50	0.37	0.57	0.57	1.55

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $760,800K ÷ $2,032,500K
= 0.37

American Electric Power Company Inc.'s payables turnover has shown fluctuations over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable. A higher ratio suggests that the company is paying its suppliers more frequently, while a lower ratio may indicate that the company is taking longer to settle its payables.

In Q4 2023, the payables turnover ratio was 3.24, which was higher compared to the previous quarter and also higher than the same quarter in the previous year. This may suggest that the company improved its efficiency in paying its suppliers during this period.

The overall trend indicates some variability in the payables turnover ratio, with fluctuations between 2.66 and 3.24 over the past eight quarters. It is essential to further analyze the reasons behind these fluctuations, such as changes in payment terms, inventory management, or supplier relationships, to gain a deeper understanding of the company's financial performance and operational efficiency in managing its accounts payable.