Chesapeake Utilities Corporation (CPK)

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 121,789 105,763 104,778 105,039 104,073 95,381 95,076 94,888 94,200 90,050 89,493 88,692 103,433 59,775 74,837 77,432 64,039 55,402 41,791 42,031
Payables US$ in thousands 77,481 53,729 44,173 38,193 61,496 46,811 38,110 30,259 52,628 53,026 49,408 58,167 60,253 46,492 46,382 52,568 54,068 53,150 50,645 75,277
Payables turnover 1.57 1.97 2.37 2.75 1.69 2.04 2.49 3.14 1.79 1.70 1.81 1.52 1.72 1.29 1.61 1.47 1.18 1.04 0.83 0.56

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $121,789K ÷ $77,481K
= 1.57

Chesapeake Utilities Corp's payables turnover ratio has exhibited fluctuating trends over the past eight quarters. The payables turnover ratio decreased from 6.93 in Q1 2022 to 2.79 in Q4 2023, showing a substantial decline in the efficiency of paying off its suppliers.

A payables turnover ratio of 2.79 in Q4 2023 indicates that the company is taking approximately 2.79 times to pay off its accounts payable during the quarter. This suggests that the company is taking longer to settle its obligations to suppliers compared to previous quarters.

The significant variability in the payables turnover ratio could be indicative of changes in the company's payment policies, negotiation strategies with suppliers, or fluctuations in the timing of payables. A lower payables turnover ratio may imply liquidity issues or potential strain on the company's relationships with its suppliers if payments are consistently delayed.

Further analysis of Chesapeake Utilities Corp's financial position, cash flow management, and supplier relationships is recommended to gain a comprehensive understanding of the factors influencing the fluctuations in the payables turnover ratio.


Peer comparison

Dec 31, 2023

Company name
Symbol
Payables turnover
Chesapeake Utilities Corporation
CPK
1.57
ONEOK Inc
OKE
7.63
Southwest Gas Holdings Inc
SWX
9.07