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