Chesapeake Utilities Corporation (CPK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 121,788 | 104,072 | 94,198 | 89,881 | 86,779 |
| Payables | US$ in thousands | 77,481 | 61,496 | 52,628 | 60,253 | 54,068 |
| Payables turnover | 1.57 | 1.69 | 1.79 | 1.49 | 1.60 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $121,788K ÷ $77,481K
= 1.57
The payables turnover of Chesapeake Utilities Corp has fluctuated over the past five years. In 2023, the payables turnover ratio decreased to 2.79 from 4.24 in 2022, indicating that the company took longer to pay its suppliers during the year. However, it is important to note that a higher payables turnover ratio does not always equate to better performance, as it could imply stricter payment terms that may strain supplier relationships.
Comparing the 2023 ratio to the previous years, the payables turnover was higher in 2022 and 2021 at 4.24 and 3.55, respectively. This suggests that the company was more efficient in managing its payables during those years. The payables turnover ratio was lower in 2020 and 2019 at 2.29 and 2.86, indicating that the company took longer to pay its suppliers in those years as well.
Further analysis would be necessary to understand the reasons behind these fluctuations in the payables turnover ratio and assess the impact on the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023