Consolidated Edison Inc (ED)
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 | 5,157,000 | 5,102,000 | 5,093,000 | 5,141,000 | 5,164,000 | 5,586,000 | 5,527,000 | 5,443,000 | 5,362,000 | 5,155,000 | 5,072,000 | 4,976,000 | 4,880,000 | 4,463,000 | 4,343,000 | 4,264,000 | 4,172,000 | 4,041,000 | 3,963,000 | 3,859,000 |
| Payables | US$ in thousands | 1,775,000 | 1,306,000 | 1,320,000 | 1,363,000 | 1,955,000 | 1,587,000 | 1,547,000 | 1,308,000 | 1,497,000 | 1,370,000 | 1,217,000 | 1,208,000 | 1,475,000 | 1,279,000 | 1,018,000 | 1,015,000 | 1,164,000 | 1,082,000 | 994,000 | 1,010,000 |
| Payables turnover | 2.91 | 3.91 | 3.86 | 3.77 | 2.64 | 3.52 | 3.57 | 4.16 | 3.58 | 3.76 | 4.17 | 4.12 | 3.31 | 3.49 | 4.27 | 4.20 | 3.58 | 3.73 | 3.99 | 3.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,157,000K ÷ $1,775,000K
= 2.91
To analyze Consolidated Edison, Inc.'s payables turnover, we observe that the ratio has fluctuated over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by paying off suppliers and vendors.
In Q1 2023, the payables turnover ratio was 3.20, which indicates that Consolidated Edison, Inc. converted its accounts payable into cash approximately 3.20 times during that quarter. This higher ratio suggests that the company efficiently paid off its suppliers within a shorter period, potentially taking advantage of any available discounts for early payment.
However, the payables turnover ratio decreased in subsequent quarters, reaching a low of 2.06 in Q4 2023. This decline could suggest that the company took longer to pay off its suppliers compared to the earlier quarters, impacting its cash flow and relationships with vendors.
Overall, it is essential for Consolidated Edison, Inc. to closely monitor its payables turnover ratio and aim for a balance between efficient payments to suppliers and maintaining positive supplier relationships. Additionally, a decreasing trend in this ratio may warrant further investigation into the company's payment policies and cash management strategies.
Peer comparison
Dec 31, 2023