Eversource Energy (ES)

Number of days of payables

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
Payables turnover 1.58 0.94 1.07 0.72 0.76 1.12 1.13 0.96 0.78 0.98 1.19 1.18 0.85 0.90 1.13 1.46 1.13 1.49 1.44 1.01
Number of days of payables days 231.01 386.28 341.09 504.58 477.32 327.06 322.22 378.44 468.99 371.13 306.79 308.43 429.85 407.34 321.66 249.52 324.13 245.44 253.28 360.65

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.58
= 231.01

By analyzing the number of days of payables for Eversource Energy over the past eight quarters, we observe fluctuations in the payment cycle efficiency. The number of days of payables provides insights into the average number of days it takes for the company to settle its outstanding supplier invoices.

In Q4 2023, the number of days of payables increased to 132.01 days from 108.41 days in Q3 2023, indicating a lengthening of the payment cycle. This suggests a slower rate at which Eversource Energy is paying its suppliers compared to the previous quarter.

The data reveals that in Q2 2023 and Q1 2023, the number of days of payables stood at 98.42 days and 120.30 days, respectively. These figures indicate relatively shorter payment cycles compared to the surrounding quarters.

Comparing to the previous year, Q4 2022 and Q1 2022 showed similar patterns of extended payment cycles with 153.88 days and 144.93 days of payables, respectively.

In contrast, Q3 2022 and Q2 2022 displayed a more efficient payment cycle with 116.80 days and 121.86 days of payables, suggesting a quicker settlement of outstanding obligations during those periods.

Overall, maintaining an appropriate number of days of payables is crucial for managing cash flow and supplier relationships. Analysis of this metric can aid in assessing Eversource Energy's liquidity position and its ability to meet financial obligations in a timely manner.