DTE Energy Company (DTE)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,118,000 | 1,043,000 | 967,000 | 1,017,000 | 1,048,000 |
| Payables | US$ in thousands | 1,387,000 | 1,361,000 | 1,604,000 | 1,414,000 | 1,000,000 |
| Payables turnover | 0.81 | 0.77 | 0.60 | 0.72 | 1.05 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,118,000K ÷ $1,387,000K
= 0.81
The payables turnover ratio for DTE Energy Company has shown a decreasing trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio declined from 1.05 in 2020 to 0.72 in 2021, further dropping to 0.60 in 2022. However, there was a slight improvement in 2023 with a ratio of 0.77, followed by a modest increase to 0.81 in 2024.
A decreasing payables turnover ratio generally indicates that the company is taking longer to pay its suppliers, which could potentially strain relationships with vendors or signal liquidity issues. However, the slight improvement in the later years may suggest that DTE Energy Company managed its payables more efficiently, although further monitoring is advisable to track any long-term impact on the company's financial health.
Peer comparison
Dec 31, 2024