American Water Works (AWK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 52,000 | 41,000 | 38,000 | 44,000 | 42,000 |
| Payables | US$ in thousands | 294,000 | 254,000 | 235,000 | 189,000 | 203,000 |
| Payables turnover | 0.18 | 0.16 | 0.16 | 0.23 | 0.21 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $52,000K ÷ $294,000K
= 0.18
Based on the payables turnover ratios provided for American Water Works Co. Inc. over the last five years, it appears that the company's payables turnover has been consistently reported as 0.00 for each year. A payables turnover ratio of 0.00 indicates that the company did not have any payables turnover during those years or there was a significant issue with reporting the data.
A payables turnover ratio of 0.00 may suggest that the company has been able to manage its accounts payable effectively by either promptly paying its suppliers or negotiating favorable credit terms that do not require frequent turnover of payables. However, it is important to note that a payables turnover ratio of 0.00 could also signal a potential reporting error or a lack of available data to calculate the ratio accurately.
Further investigation into the company's payables management practices, supplier relationships, and financial reporting procedures may be necessary to understand the reasons behind the consistent 0.00 payables turnover ratio reported by American Water Works Co. Inc.
Peer comparison
Dec 31, 2023