Avista Corporation (AVA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	10,735	-6,540	7,024	13,811	41,432
Payables	US$ in thousands	143,262	202,954	133,096	106,613	110,219
Payables turnover		0.07	-0.03	0.05	0.13	0.38

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $10,735K ÷ $143,262K
= 0.07

Avista Corp.'s payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio measures how efficiently the company is managing its accounts payable by evaluating how many times during a period the company pays off its suppliers.

In 2023, the payables turnover ratio increased to 4.90 times, indicating that Avista Corp. paid off its suppliers almost 5 times during the year. This may suggest that the company is managing its payables more efficiently compared to the previous year.

In 2022, the payables turnover ratio was 3.63, which was lower than the ratios for 2021 and 2019 but comparable to 2020. This might suggest that Avista Corp. took longer to pay off its suppliers in 2022.

Overall, the increasing trend in payables turnover from 2020 to 2023 indicates an improvement in how Avista Corp. manages its accounts payable. However, further analysis and comparison with industry benchmarks would provide more insights into the company's payables management efficiency.