Black Hills Corporation (BKH)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	341,400	273,512	204,281	137,122	71,600	71,756	71,417	71,915	71,233	68,293	67,387	65,992	64,318	-267,402	-197,377	-198,140	-199,044	131,021	58,758	57,519
Payables	US$ in thousands	229,100	136,300	155,200	132,600	186,400	124,033	133,300	173,221	310,000	187,046	185,735	173,102	217,761	142,130	133,354	160,179	183,340	152,010	118,942	136,344
Payables turnover		1.49	2.01	1.32	1.03	0.38	0.58	0.54	0.42	0.23	0.37	0.36	0.38	0.30	-1.88	-1.48	-1.24	-1.09	0.86	0.49	0.42

December 31, 2024 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable. A higher ratio indicates that the company is paying off its suppliers more quickly.

Black Hills Corporation's payables turnover ratio has shown a fluctuating trend over the past few years. From March 31, 2020, to September 30, 2021, the company had negative payables turnover ratios, which could imply potential issues with managing its accounts payable effectively during that period.

However, from December 31, 2021, onwards, the payables turnover ratio improved and started to show positive figures. This indicates that the company has been managing its payables more efficiently, with a notable increase in the ratio from September 30, 2024.

Overall, Black Hills Corporation seems to have made progress in managing its accounts payable more effectively in recent periods based on the improving payables turnover ratios.