American Electric Power Co Inc (AEP)

Payables turnover

		Dec 31, 2024	Sep 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	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
Cost of revenue (ttm)	US$ in thousands	4,752,700	854,600	799,100	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
Payables	US$ in thousands	2,637,600	2,265,600	1,990,900	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
Payables turnover		1.80	0.38	0.40	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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,752,700K ÷ $2,637,600K
= 1.80

The payables turnover ratio for American Electric Power Co Inc has shown fluctuations over the years, ranging from 0.37 to 1.80 as of December 31, 2024. This ratio indicates how many times the company pays off its suppliers during a specific period. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which may imply strong liquidity or favorable credit terms. On the other hand, a lower ratio may indicate a slower turnover of payables, potentially signaling liquidity challenges or extended payment terms with suppliers. It is essential to consider industry norms and historical trends when interpreting the payables turnover ratio in isolation. Additionally, changes in the ratio should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and operational efficiency.