EQT Corporation (EQT)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,736,984	2,589,402	2,671,817	2,644,868	2,611,230	2,519,252	2,515,845	2,531,500	2,736,475	2,909,786	2,845,473	2,760,362	2,467,775	1,587,019	1,534,508	1,477,093	1,555,623	2,657,223	2,712,388	2,779,126
Payables	US$ in thousands	1,177,660	1,042,390	1,198,220	1,124,920	1,272,520	1,159,740	1,049,900	1,153,260	1,574,610	1,678,080	1,700,410	1,416,270	1,339,250	1,183,190	820,134	812,273	705,461	693,141	686,512	692,268
Payables turnover		2.32	2.48	2.23	2.35	2.05	2.17	2.40	2.20	1.74	1.73	1.67	1.95	1.84	1.34	1.87	1.82	2.21	3.83	3.95	4.01

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,736,984K ÷ $1,177,660K
= 2.32

The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance over a specific period.

In the case of EQT Corporation, the payables turnover ratio has shown some fluctuation over the years. It decreased from 4.01 on March 31, 2020, to a low of 1.34 on September 30, 2021. This significant decline may indicate that EQT Corporation took longer to pay off its accounts payable during this period.

However, from March 31, 2022, onwards, the payables turnover ratio started to improve and gradually increased to 2.32 by December 31, 2024. This upward trend suggests that EQT Corporation became more efficient in managing its accounts payable, indicating a quicker turnover of payables and potentially better relationships with suppliers.

Overall, while there were fluctuations in the payables turnover ratio for EQT Corporation over the years, the company managed to improve its efficiency in paying off its accounts payable towards the latter part of the period under consideration. This improvement could indicate better liquidity management and stronger supplier relationships.