CenterPoint Energy Inc (CNP)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	809,000	959,000	973,000	1,135,000	4,870,000
Payables	US$ in thousands	917,000	1,352,000	1,196,000	853,000	884,000
Payables turnover		0.88	0.71	0.81	1.33	5.51

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $809,000K ÷ $917,000K
= 0.88

The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how quickly the company pays off its suppliers.

Centerpoint Energy Inc.'s payables turnover for the past five years shows a fluctuating trend:

- In 2023, the payables turnover ratio was 2.36, indicating that the company paid off its accounts payable approximately 2.36 times during the year. This represents an improvement from the previous year.
- In 2022, the ratio was 2.29, slightly lower than 2023, implying a slightly slower payment cycle.
- In 2021, the ratio decreased to 1.95, suggesting a longer time taken to pay off suppliers compared to the previous two years.
- In 2020, there was a slight improvement with a ratio of 2.05, indicating a better payment cycle compared to 2021.
- In 2019, the payables turnover ratio was notably high at 5.02, reflecting a very efficient management of accounts payable, possibly due to specific circumstances during that year.

Overall, the fluctuating trend in Centerpoint Energy Inc.'s payables turnover ratio over the past five years may indicate changes in the company's payment policies, relations with suppliers, or the efficiency of the accounts payable process. An in-depth analysis of the company's financial and operational strategies would be necessary to fully understand the drivers behind these fluctuations and assess the effectiveness of its payables management.