Eversource Energy (ES)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,539,060	1,616,480	1,301,450	1,163,860	1,363,560
Payables	US$ in thousands	1,869,190	2,113,900	1,672,230	1,370,650	1,147,870
Payables turnover		2.96	0.76	0.78	0.85	1.19

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,539,060K ÷ $1,869,190K
= 2.96

The payables turnover ratio for Eversource Energy has shown some variability over the past five years. In 2023, the payables turnover ratio improved to 2.76 from 2.37 in 2022, indicating that the company took approximately 2.76 times to pay off its accounts payable during the year. This increase suggests that Eversource Energy was able to manage its accounts payable more efficiently in 2023 compared to the previous year.

Moreover, when looking at the trend over the five-year period, we observe fluctuations in the payables turnover ratio. Although there was a general positive trend from 2020 to 2023, with the ratio peaking in 2023, it is also worth noting that the ratio was lowest in 2021 at 2.02 before gradually increasing.

Overall, a higher payables turnover ratio indicates that the company is effectively managing its payables, possibly negotiating better terms with suppliers or paying bills promptly. It is essential to continue monitoring this ratio to assess Eversource Energy's ability to manage its working capital effectively.