Entergy Corporation (ETR)

Payables turnover

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Cost of revenue (ttm)	US$ in thousands	2,884,549	2,953,596	2,918,119	2,730,247	2,730,494	2,549,693	2,521,546	3,011,500	2,933,595	2,954,899	2,955,185	2,582,389	2,619,019	2,791,247	2,774,594	2,847,307	3,026,889	2,960,630	3,370,350	3,729,933
Payables	US$ in thousands	1,566,740	1,336,110	1,523,750	1,385,950	1,777,590	1,744,250	1,935,290	1,741,050	2,610,130	3,452,220	1,348,730	1,697,210	2,872,450	1,509,360	1,502,390	1,499,860	1,328,630	1,412,610	1,406,330	1,496,060
Payables turnover		1.84	2.21	1.92	1.97	1.54	1.46	1.30	1.73	1.12	0.86	2.19	1.52	0.91	1.85	1.85	1.90	2.28	2.10	2.40	2.49

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,884,549K ÷ $1,566,740K
= 1.84

The payables turnover ratio of Entergy Corp. has shown fluctuation over the past eight quarters. The ratio indicates how many times the company pays off its accounts payable during a specific period.

The payables turnover ratio ranged from a low of 2.13 in Q2 2022 to a high of 3.96 in Q1 2023. This indicates that, on average, Entergy Corp. took approximately 2.13 to 3.96 quarters to pay off its accounts payable.

The trend shows an overall improvement in the efficiency of paying off accounts payable, with a general increase in the ratio over time. This can suggest that the company has been managing its payables effectively and potentially negotiating better payment terms with suppliers.

A high payables turnover ratio can imply that the company is efficiently managing its cash flow by paying off its obligations promptly. However, it is essential to consider the industry norms and compare the ratio with competitors to get a better understanding of Entergy Corp.'s performance in managing its accounts payable.