Consolidated Edison Inc (ED)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,157,000 | 5,164,000 | 5,363,000 | 4,881,000 | 4,172,000 |
| Payables | US$ in thousands | 1,775,000 | 1,955,000 | 1,497,000 | 1,475,000 | 1,164,000 |
| Payables turnover | 2.91 | 2.64 | 3.58 | 3.31 | 3.58 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,157,000K ÷ $1,775,000K
= 2.91
The payables turnover ratio for Consolidated Edison, Inc. has shown some fluctuations over the past five years. The ratio was 2.06 in 2023, slightly lower than the previous year's ratio of 2.09. This indicates that, on average, the company took approximately 2.06 times to pay off its accounts payable during 2023.
Comparing the current ratio to previous years, we can observe a general upward trend from 2019 to 2020, followed by fluctuations in the subsequent years. The increase from 2019 to 2020 suggests that the company improved its efficiency in paying off its suppliers or managing its trade credit obligations. However, the lower ratios in 2021 and 2023 may indicate a slower turnover of payables during those years, possibly due to changes in the company's payment policies or supplier relationships.
It is important to consider the payables turnover ratio in conjunction with other liquidity and efficiency metrics to gain a more comprehensive understanding of Consolidated Edison, Inc.'s financial performance and management of working capital. Additionally, further analysis of the company's accounts payable trends and payment practices would provide additional insights into its financial health and operational efficiency.
Peer comparison
Dec 31, 2023