American Water Works (AWK)
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 | 52,000 | 40,000 | 41,000 | 41,000 | 41,000 | 47,000 | 480,000 | 908,000 | 1,324,000 | 1,330,000 | 1,313,000 | 1,273,000 | 1,237,000 | 1,235,000 | 1,211,000 | 1,192,000 | 1,174,000 | 1,208,000 | 870,000 | 846,000 |
| Payables | US$ in thousands | 294,000 | 228,000 | 246,000 | 193,000 | 254,000 | 220,000 | 196,000 | 175,000 | 235,000 | 175,000 | 146,000 | 134,000 | 189,000 | 162,000 | 169,000 | 152,000 | 203,000 | 149,000 | 140,000 | 130,000 |
| Payables turnover | 0.18 | 0.18 | 0.17 | 0.21 | 0.16 | 0.21 | 2.45 | 5.19 | 5.63 | 7.60 | 8.99 | 9.50 | 6.54 | 7.62 | 7.17 | 7.84 | 5.78 | 8.11 | 6.21 | 6.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $52,000K ÷ $294,000K
= 0.18
Based on the data provided for American Water Works Co. Inc., the payables turnover ratio for each quarter in the past two years has been consistently reported as 0.00. A payables turnover ratio of 0.00 indicates that the company is not effectively utilizing its accounts payable to support its operations or product purchases. This could imply that the company is not efficiently managing its trade credit terms with suppliers or is not paying its suppliers in a timely manner.
A payables turnover ratio of 0.00 may also suggest that the company has significant cash reserves or other sources of liquidity that allow it to delay payments to suppliers without impacting its operations. It is essential for the company to analyze its payables turnover ratio in conjunction with other financial metrics to understand the underlying reasons for this consistently low ratio and assess the potential implications for its financial performance and liquidity management.
Peer comparison
Dec 31, 2023