Black Hills Corporation (BKH)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		0.38	0.23	0.30	0.33	0.29
Number of days of payables	days	950.22	1,588.45	1,235.78	1,106.76	1,245.19

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.38
= 950.22

The number of days of payables for Black Hills Corporation has fluctuated over the past five years. In 2023, the company took approximately 69.22 days to pay its suppliers, showing an improvement from 2022 when it took 91.96 days. This suggests that the company managed its accounts payables more efficiently in 2023.

Comparing to 2021 and 2020 when the number of days of payables were 107.13 and 135.90 days respectively, it is evident that Black Hills Corporation has reduced the time taken to settle its payables. This could be a result of improved cash management practices or negotiation of better payment terms with suppliers.

Although there was a slight increase in the number of days of payables from 2019 to 2020, the trend from 2020 to 2023 indicates a positive direction in managing payables effectively. Overall, a decreasing trend in the number of days of payables reflects potential better liquidity management and cash flow efficiency within the company.