Duke Energy Corporation (DUK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,513,000 | 7,771,000 | 7,590,000 | 13,823,000 | 8,857,000 |
| Payables | US$ in thousands | 4,228,000 | 4,754,000 | 3,531,000 | 3,144,000 | 3,487,000 |
| Payables turnover | 1.78 | 1.63 | 2.15 | 4.40 | 2.54 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,513,000K ÷ $4,228,000K
= 1.78
The payables turnover ratio for Duke Energy Corp. has shown a fluctuating trend over the past five years. The ratio increased from 2.14 in 2019 to 2.29 in 2023, indicating that Duke Energy Corp. was able to pay off its suppliers more frequently relative to the previous years. This suggests that the company has been managing its accounts payable more efficiently.
However, it is important to note that the payables turnover ratio decreased in 2022 to 2.12 from 2.29 in 2021, before increasing again in 2023. This fluctuation could be due to various factors such as changes in the company's payment terms with suppliers, changes in the industry, or the company's overall financial performance.
Overall, a payables turnover ratio of around 2 to 2.3 indicates that Duke Energy Corp. is efficiently managing its accounts payable by paying its suppliers approximately 2 to 2.3 times per year. A higher payables turnover ratio generally signifies that the company is managing its working capital effectively and maintaining good relationships with its suppliers.
Peer comparison
Dec 31, 2023