Evergy Inc. Common Stock (EVRG)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,559,600	1,499,400	1,462,900	1,425,500	1,390,600	1,380,600	1,361,900	1,352,600	1,335,900	1,294,200	1,282,000	1,271,400	1,268,000	1,280,600	1,279,200	1,273,700	1,269,800	1,061,900	1,093,900	1,059,200
Payables	US$ in thousands	616,900	418,000	369,800	366,400	600,800	398,200	474,300	396,100	639,700	437,000	390,000	345,300	654,000	358,900	332,800	298,100	528,800	311,300	278,100	293,700
Payables turnover		2.53	3.59	3.96	3.89	2.31	3.47	2.87	3.41	2.09	2.96	3.29	3.68	1.94	3.57	3.84	4.27	2.40	3.41	3.93	3.61

December 31, 2023 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance over a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could suggest strong liquidity and efficient management of working capital.

Analyzing Evergy Inc's payables turnover ratio over the past eight quarters, we can observe fluctuations in the ratio. In Q1 2023, the payables turnover ratio was 5.09, which indicates that Evergy Inc paid its suppliers 5.09 times during that quarter. This was the highest ratio in the period assessed and suggests that the company efficiently managed its accounts payable by paying suppliers more frequently.

In contrast, in Q2 2022, the payables turnover ratio was 2.87, the lowest in the period evaluated. This implies that Evergy Inc paid its suppliers 2.87 times during that quarter, which could potentially indicate a slower payment cycle or less efficient management of accounts payable.

Overall, Evergy Inc's payables turnover ratio has shown variability over the past eight quarters, indicating fluctuations in how promptly the company pays its suppliers. Further analysis of the underlying reasons for these fluctuations, such as changes in purchasing practices, supplier relationships, or working capital management, would be necessary to fully understand the company's accounts payable efficiency.