Peabody Energy Corp (BTU)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 663,300 | 664,800 | 461,700 | 1,967,800 | 871,100 |
| Payables | US$ in thousands | 275,800 | 240,700 | 201,700 | 146,300 | 254,800 |
| Payables turnover | 2.41 | 2.76 | 2.29 | 13.45 | 3.42 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $663,300K ÷ $275,800K
= 2.41
Peabody Energy Corp's payables turnover ratio has displayed fluctuations over the past five years, with a high of 13.45 in 2020 and a low of 2.29 in 2021. The ratio indicates how efficiently the company is managing its trade payables by measuring the number of times in a year that the company pays off its average accounts payable balance.
A low payables turnover ratio suggests that the company is taking longer to pay its suppliers, which may strain relationships or signal cash flow issues. On the other hand, a high ratio may indicate that the company is paying off its obligations quickly, potentially improving relationships with suppliers and taking advantage of potential discounts.
For Peabody Energy Corp, the declining trend from 2020 to 2021 and then a slight increase in 2022 and 2023 may indicate varying payment strategies or changes in supplier relationships. Further analysis of the company's financial health and liquidity position would be necessary to understand the underlying reasons for these fluctuations in payables turnover.
Peer comparison
Dec 31, 2023