EQT Corporation (EQT)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,727,630	2,624,260	2,802,770	2,517,310	2,387,860
Payables	US$ in thousands	1,177,660	1,272,520	1,574,610	1,339,250	705,461
Payables turnover		2.32	2.06	1.78	1.88	3.38

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,727,630K ÷ $1,177,660K
= 2.32

The payables turnover ratio measures how efficiently EQT Corporation is managing its trade payables. A higher turnover ratio indicates that the company is paying off its suppliers faster relative to its purchasing activities.

Based on the data provided:
- The payables turnover ratio decreased from 3.38 in December 31, 2020, to 1.88 in December 31, 2021, indicating a decline in the speed at which EQT Corporation is paying its suppliers.
- The ratio further decreased to 1.78 in December 31, 2022, suggesting a continued slowdown in payables turnover from the previous year.
- There was a slight improvement as the ratio increased to 2.06 in December 31, 2023, indicating a better performance in managing trade payables compared to the prior year.
- By December 31, 2024, the ratio increased further to 2.32, demonstrating a continued improvement in payables turnover efficiency.

Overall, the trend in EQT Corporation's payables turnover suggests some fluctuations in the efficiency of managing trade payables, with improvements observed in the later years of the dataset. It is important for the company to maintain an optimal balance in payables turnover to ensure healthy vendor relationships and effective working capital management.