Kinder Morgan Inc (KMI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,886,000 | 10,232,000 | 9,097,000 | 5,145,000 | 4,150,000 |
| Payables | US$ in thousands | 1,366,000 | 1,444,000 | 1,259,000 | 837,000 | 914,000 |
| Payables turnover | 4.31 | 7.09 | 7.23 | 6.15 | 4.54 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,886,000K ÷ $1,366,000K
= 4.31
Kinder Morgan Inc's payables turnover has shown fluctuations over the past five years. The payables turnover ratio represents how efficiently the company is managing its trade payables by paying its suppliers.
In 2023, the payables turnover ratio decreased to 3.61 from 6.41 in 2022, indicating a decrease in the efficiency of paying off suppliers compared to the previous year. It is important to note that a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships.
In 2021, there was an improvement in the payables turnover ratio to 5.16, showing increased efficiency in managing payables compared to 2020 when the ratio was at 3.04. This improvement suggests that the company was able to pay its suppliers more rapidly in 2021.
Overall, Kinder Morgan Inc's payables turnover has shown varying trends over the past five years. The company should monitor this ratio closely to ensure efficient management of its trade payables and maintain strong relationships with its suppliers.
Peer comparison
Dec 31, 2023