Avista Corporation (AVA)

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	634,105	616,736	134,673	-6,541	-6,540	6,888	6,886	6,929	7,024	13,472	13,588	13,703	13,811	21,803	21,791	21,769	41,407	32,856	33,894	34,910
Payables	US$ in thousands	143,262	105,320	103,587	112,230	202,954	112,646	121,315	112,126	133,096	102,824	104,048	93,100	106,613	83,697	110,675	88,184	110,219	91,358	80,619	109,922
Payables turnover		4.43	5.86	1.30	-0.06	-0.03	0.06	0.06	0.06	0.05	0.13	0.13	0.15	0.13	0.26	0.20	0.25	0.38	0.36	0.42	0.32

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $634,105K ÷ $143,262K
= 4.43

The payables turnover ratio measures how efficiently Avista Corp. is managing its accounts payable by indicating how many times the company pays off its suppliers in a given period. A higher payables turnover ratio is favorable as it suggests that Avista Corp. is paying its suppliers more frequently.

Based on the data provided, there seems to be some fluctuation in Avista Corp.'s payables turnover ratio over the past eight quarters. The ratio ranged from a low of 3.63 in Q4 2022 to a high of 7.01 in Q2 2023.

The trend indicates that Avista Corp. has generally been improving its efficiency in paying off its suppliers since Q4 2022. While there was a significant improvement in Q1 and Q2 2023, with ratios above 6, the ratio dropped slightly in Q4 2023 to 4.90, but it remains higher than the values from the previous year.

Overall, the payables turnover ratios suggest that Avista Corp. has been managing its accounts payable effectively, paying its suppliers more promptly in recent quarters compared to previous periods. However, it is essential for the company to maintain consistency in this aspect to ensure good relationships with its suppliers and optimize its working capital management.