Kinder Morgan Inc (KMI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,259,000 | 5,886,000 | 10,232,000 | 9,097,000 | 5,145,000 |
| Payables | US$ in thousands | 1,395,000 | 1,366,000 | 1,444,000 | 1,259,000 | 837,000 |
| Payables turnover | 3.77 | 4.31 | 7.09 | 7.23 | 6.15 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,259,000K ÷ $1,395,000K
= 3.77
The payables turnover ratio for Kinder Morgan Inc has shown a consistent improvement from 2020 to 2022, indicating that the company is managing its accounts payable more efficiently. However, there was a notable decrease in the ratio in 2023 and a further decline in 2024.
A payables turnover ratio of 4.31 in 2023 and 3.77 in 2024 suggests that Kinder Morgan Inc took longer to pay off its accounts payable during these years compared to the preceding period.
It is important for the company to monitor and analyze the reasons behind this decline to ensure efficient cash flow management and maintain good relationships with suppliers. A low payables turnover ratio could indicate potential liquidity issues or challenges in managing working capital effectively.
Peer comparison
Dec 31, 2024