Kinder Morgan Inc (KMI)
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 | 5,886,000 | 6,556,000 | 7,868,000 | 9,563,000 | 10,232,000 | 11,867,000 | 10,721,000 | 8,982,000 | 9,097,000 | 6,319,000 | 5,394,000 | 4,894,000 | 3,545,000 | 3,366,000 | 3,495,000 | 3,843,000 | 4,150,000 | 4,550,000 | 4,923,000 | 5,888,000 |
| Payables | US$ in thousands | 1,366,000 | 1,430,000 | 1,142,000 | 1,087,000 | 1,444,000 | 1,579,000 | 1,691,000 | 1,204,000 | 1,259,000 | 1,189,000 | 949,000 | 968,000 | 837,000 | 774,000 | 698,000 | 752,000 | 914,000 | 916,000 | 900,000 | 1,012,000 |
| Payables turnover | 4.31 | 4.58 | 6.89 | 8.80 | 7.09 | 7.52 | 6.34 | 7.46 | 7.23 | 5.31 | 5.68 | 5.06 | 4.24 | 4.35 | 5.01 | 5.11 | 4.54 | 4.97 | 5.47 | 5.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,886,000K ÷ $1,366,000K
= 4.31
Kinder Morgan Inc's payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 3.61 to a high of 7.89. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers. A higher ratio suggests that the company is paying off its suppliers more quickly.
In Q1 2023, the payables turnover ratio was at its highest at 7.89, indicating that Kinder Morgan Inc was able to pay off its suppliers nearly 8 times during that quarter. This may suggest effective management of payables and good relationships with suppliers.
On the other hand, in Q4 2023, the payables turnover ratio decreased to 3.61, the lowest among the quarters provided. This could imply that Kinder Morgan Inc took longer to pay off its suppliers during that period, which may have various implications such as strained supplier relationships or potential cash flow challenges.
Overall, analyzing the trend of payables turnover ratios over the last eight quarters can provide insights into Kinder Morgan Inc's financial performance and efficiency in managing its working capital. Further investigation into the reasons behind the fluctuations in this ratio can help in assessing the company's financial health and management of its payables.
Peer comparison
Dec 31, 2023