Entergy Corporation (ETR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Cost of revenue	US$ in thousands	2,877,350	3,020,130	2,921,940	2,847,700	3,050,720
Payables	US$ in thousands	1,566,740	1,777,590	2,610,130	1,499,860	1,496,060
Payables turnover		1.84	1.70	1.12	1.90	2.04

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,877,350K ÷ $1,566,740K
= 1.84

Entergy Corp.'s payables turnover has fluctuated over the past five years, indicating variations in how efficiently the company is managing its payables. The payables turnover ratio was highest in 2022 at 2.98, suggesting that the company was able to pay off its suppliers relatively quickly during that year. In contrast, the ratio dropped significantly in 2020 to 0.90, indicating a potential delay in paying off its payables.

In 2023, the payables turnover ratio decreased to 2.41, which is lower than the peak in 2022 but still higher than the ratios seen in 2020 and 2021. This suggests that Entergy Corp. improved its efficiency in managing payables compared to the previous two years but has not yet reached the level seen in 2022.

Overall, the variations in Entergy Corp.'s payables turnover ratios highlight the importance of closely monitoring the company's payment practices and relationships with suppliers to ensure effective cash flow management and optimize working capital. Further analysis of the underlying reasons for these fluctuations would provide deeper insights into the company's financial management strategies.