FirstEnergy Corporation (FE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,726,000 | 1,886,000 | 1,581,000 | 1,484,000 | 1,576,000 |
| Payables | US$ in thousands | 1,362,000 | 1,503,000 | 943,000 | 827,000 | 918,000 |
| Payables turnover | 1.27 | 1.25 | 1.68 | 1.79 | 1.72 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,726,000K ÷ $1,362,000K
= 1.27
Firstenergy Corp.'s payables turnover ratio has fluctuated over the past five years. The ratio was 3.41 in 2023, slightly higher than the previous year's 3.06, indicating that the company was able to manage its accounts payable more efficiently. This improvement suggests that Firstenergy Corp. was able to pay off its suppliers more frequently within the year, which may indicate favorable payment terms or improved working capital management.
Comparing these recent figures to earlier years, the payables turnover ratio was at its lowest in 2022 at 3.06 and highest in 2021 at 3.65. Overall, the company has maintained a relatively consistent payables turnover ratio range between 3.41 and 3.71 over the past five years, indicating a stable relationship with its suppliers in terms of payment cycles.
A high payables turnover ratio generally suggests that a company is paying off its suppliers relatively quickly, which may be seen as favorable in terms of cash flow management. However, it is essential to consider industry norms and specific business circumstances when evaluating the significance of this ratio in the financial health of Firstenergy Corp.
Peer comparison
Dec 31, 2023