Allete Inc (ALE)
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 | 894,000 | 916,900 | 925,300 | 781,200 | 587,300 | 465,000 | 438,900 | 415,900 | 415,300 | 401,000 | 398,900 | 395,900 | 390,700 | 137,800 | 136,300 | 135,200 | 150,600 | 257,300 | 283,300 | 305,800 |
| Payables | US$ in thousands | 102,200 | 112,300 | 89,300 | 84,900 | 103,000 | 124,300 | 134,800 | 75,900 | 111,000 | 101,900 | 100,000 | 107,000 | 110,000 | 79,000 | 86,100 | 164,400 | 165,200 | 143,500 | 150,400 | 134,400 |
| Payables turnover | 8.75 | 8.16 | 10.36 | 9.20 | 5.70 | 3.74 | 3.26 | 5.48 | 3.74 | 3.94 | 3.99 | 3.70 | 3.55 | 1.74 | 1.58 | 0.82 | 0.91 | 1.79 | 1.88 | 2.28 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $894,000K ÷ $102,200K
= 8.75
Allete, Inc.'s payables turnover ratio has been trending upwards over the past eight quarters, indicating improvements in the efficiency of managing its accounts payable. The payables turnover ratio measures how many times a company pays off its average accounts payable balance during a period. A higher ratio suggests that the company is paying off its suppliers more quickly.
In Q4 2023, the payables turnover ratio was 9.36, compared to 8.92 in Q3 2023 and 7.07 in Q4 2022. This indicates that Allete, Inc. is managing its payables more effectively in the most recent quarter. The company has been able to negotiate better payment terms with its suppliers or has improved its internal processes for managing accounts payable.
The quarterly fluctuations in the payables turnover ratio may be influenced by various factors such as seasonal variations in business activity, changes in supplier relationships, or modifications in payment policies. Overall, the increasing trend in the payables turnover ratio for Allete, Inc. suggests a positive trajectory in its ability to efficiently manage its accounts payable and optimize its working capital.
Peer comparison
Dec 31, 2023