Dominion Energy Inc (D)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,837,000 | 6,069,000 | 3,848,000 | 5,590,000 | 5,489,000 |
| Payables | US$ in thousands | 921,000 | 1,163,000 | 1,197,000 | 944,000 | 1,023,000 |
| Payables turnover | 4.17 | 5.22 | 3.21 | 5.92 | 5.37 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,837,000K ÷ $921,000K
= 4.17
The payables turnover for Dominion Energy Inc has fluctuated over the past five years, ranging from 2.93 to 4.64. The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times a company pays off its average accounts payable balance during a period.
In 2023, Dominion Energy Inc's payables turnover ratio improved significantly to 4.64 compared to 2.93 in 2022. This suggests that the company is paying off its suppliers more frequently in 2023, which could indicate improved liquidity or negotiation power with suppliers.
However, the ratio in 2023 is also higher compared to the ratios in 2021 (2.94), 2020 (3.37), and 2019 (4.09), indicating a notable increase in the speed at which the company is paying off its payables. This could be a result of more efficient cash flow management or changes in payment terms with suppliers.
Overall, an increasing trend in the payables turnover ratio signifies that Dominion Energy Inc has been managing its accounts payable effectively and efficiently over the years, translating into better working capital management and potentially improved relationships with suppliers.
Peer comparison
Dec 31, 2023