Black Hills Corporation (BKH)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	341,400	71,600	71,233	64,318	60,464
Payables	US$ in thousands	229,100	186,400	310,000	217,761	183,340
Payables turnover		1.49	0.38	0.23	0.30	0.33

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $341,400K ÷ $229,100K
= 1.49

Black Hills Corporation's payables turnover ratio has exhibited fluctuations over the years. The ratio decreased from 0.33 in December 2020 to 0.30 in December 2021, indicating a slight decline in the efficiency of paying off its suppliers. However, there was a more significant decrease to 0.23 in December 2022, suggesting potential delays in settling payables.

Subsequently, the payables turnover ratio improved substantially to 0.38 in December 2023, indicating a more efficient management of accounts payable. The most notable change occurred in December 2024, where the ratio spiked to 1.49, signaling a significant enhancement in the company's ability to settle its obligations to suppliers.

Overall, the trend in Black Hills Corporation's payables turnover indicates variability in how efficiently the company pays its suppliers, with room for improvement in some years and a remarkable improvement in others. It will be essential for stakeholders to monitor this ratio consistently to assess the company's liquidity management and supplier relationships.