Green Plains Renewable Energy Inc (GPRE)

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	3,103,838	3,345,726	3,491,284	3,577,507	3,525,011	3,396,969	3,170,291	2,888,385	2,625,109	2,392,379	2,095,820	1,887,166	2,058,970	2,276,010	2,510,889	3,009,134	2,374,842	2,348,131	1,742,699	878,147
Payables	US$ in thousands	186,643	138,350	105,094	128,557	234,301	123,035	127,163	106,308	146,063	112,459	102,404	92,972	140,058	89,566	93,566	96,053	156,693	126,815	105,802	103,729
Payables turnover		16.63	24.18	33.22	27.83	15.04	27.61	24.93	27.17	17.97	21.27	20.47	20.30	14.70	25.41	26.84	31.33	15.16	18.52	16.47	8.47

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,103,838K ÷ $186,643K
= 16.63

The payables turnover ratio of Green Plains Inc has shown varying trends over the past eight quarters. The ratio measures how efficiently the company is managing its accounts payables by indicating how many times a company pays off its average accounts payable balance during a period.

In Q4 2023, the payables turnover ratio was 16.63, indicating that Green Plains Inc paid off its accounts payables approximately 16.63 times in that quarter. This was a decrease from the previous quarter's ratio of 24.18. The decline suggests a slower rate of paying off suppliers or a buildup in accounts payables relative to the previous quarter.

Looking at the trend over the past year, the payables turnover ratio has fluctuated, with the highest ratio recorded in Q3 2023 at 33.22 and the lowest in Q4 2022 at 15.04. These fluctuations may reflect changes in the company's payment terms, relationships with suppliers, or the overall volume of purchases and payables.

Overall, a high payables turnover ratio typically indicates that a company is efficiently managing its accounts payables by paying suppliers promptly. Conversely, a low ratio may suggest inefficiencies in managing payables or a potential strain on supplier relationships. Thus, close monitoring of this ratio is essential for assessing Green Plains Inc's liquidity and vendor management practices.