Evergy Inc. Common Stock (EVRG)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,559,600	1,390,600	1,335,900	1,296,700	1,269,800
Payables	US$ in thousands	616,900	600,800	639,700	654,000	528,800
Payables turnover		2.53	2.31	2.09	1.98	2.40

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,559,600K ÷ $616,900K
= 2.53

The payables turnover ratio for Evergy Inc has fluctuated over the past five years. In 2023, the ratio stands at 2.42, indicating that the company is taking approximately 2.42 times to pay off its suppliers or trade payables during the year. This represents a decrease from the previous year's ratio of 3.03.

Comparing the current ratio to earlier years, it is higher than in 2020 and 2019 but slightly lower than the 2021 ratio. The decrease in the payables turnover ratio from 2022 to 2023 may suggest that Evergy Inc is taking longer to pay its suppliers, potentially indicating a less efficient use of trade credit or a change in the company's payment terms.

Overall, the payables turnover ratio provides insights into how quickly Evergy Inc is managing its accounts payable. A lower ratio may signify potential liquidity issues, while a higher ratio could indicate favorable payment terms or efficient working capital management.