Black Hills Corporation (BKH)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	71,600	71,233	64,318	60,464	56,727
Payables	US$ in thousands	186,400	310,000	217,761	183,340	193,523
Payables turnover		0.38	0.23	0.30	0.33	0.29

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $71,600K ÷ $186,400K
= 0.38

Based on the data provided, the payables turnover ratio for Black Hills Corporation has shown a consistent improvement over the past five years. The payables turnover ratio measures how efficiently a company is managing its supplier payments.

In 2023, the payables turnover ratio reached 5.27, a significant increase from 3.97 in 2022, indicating that Black Hills Corporation was able to pay off its suppliers more frequently during the year. This suggests an improvement in the company's ability to manage its accounts payable efficiently.

The trend of increasing payables turnover ratios from 2020 to 2023 reflects positively on Black Hills Corporation's liquidity and working capital management. A higher payables turnover ratio typically indicates that the company is effectively using its suppliers' credit terms to finance its operations without holding onto unpaid bills for an extended period.

Overall, the increasing trend in payables turnover ratios suggests that Black Hills Corporation has been successful in optimizing its accounts payable processes, strengthening its relationships with suppliers, and potentially improving its cash flow management over the years.