FirstEnergy Corporation (FE)
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 | 1,726,000 | 1,786,000 | 1,829,000 | 1,879,000 | 1,886,000 | 1,758,000 | 1,681,000 | 1,603,000 | 1,581,000 | 1,570,000 | 1,539,000 | 1,504,000 | 1,484,000 | 1,457,000 | 1,482,000 | 1,538,000 | 1,576,000 | 1,806,000 | 1,884,000 | 2,519,000 |
| Payables | US$ in thousands | 1,362,000 | 1,262,000 | 1,200,000 | 1,238,000 | 1,503,000 | 1,125,000 | 1,182,000 | 1,090,000 | 943,000 | 876,000 | 1,184,000 | 870,000 | 827,000 | 891,000 | 882,000 | 898,000 | 918,000 | 893,000 | 810,000 | 892,000 |
| Payables turnover | 1.27 | 1.42 | 1.52 | 1.52 | 1.25 | 1.56 | 1.42 | 1.47 | 1.68 | 1.79 | 1.30 | 1.73 | 1.79 | 1.64 | 1.68 | 1.71 | 1.72 | 2.02 | 2.33 | 2.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,726,000K ÷ $1,362,000K
= 1.27
The payables turnover ratio for Firstenergy Corp. has shown a fluctuating trend over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a certain period.
In Q1 2022, the payables turnover was 3.32, and it increased to 3.74 in Q3 2022 before slightly dropping to 3.29 in Q2 2022. The ratio then increased in Q4 2022 to 3.06 before showing an upward trend in the first half of 2023. In Q2 2023, it reached 4.06, indicating that Firstenergy Corp. was able to pay off its accounts payable more frequently compared to previous quarters. However, this ratio dropped to 3.87 in Q3 2023 and further to 3.41 in Q4 2023.
Overall, the payables turnover ratio for Firstenergy Corp. has been above 3, indicating that the company is efficient in managing its accounts payable. The fluctuations in the ratio may indicate changes in the company's payment policies, supplier relationships, or operational efficiency. Further analysis and comparison with industry benchmarks may provide more insights into the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023