Alliant Energy Corp (LNT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,394,000 | 1,375,000 | 1,319,000 | 1,195,000 | 1,192,300 |
| Payables | US$ in thousands | 611,000 | 756,000 | 436,000 | 377,000 | 422,000 |
| Payables turnover | 2.28 | 1.82 | 3.03 | 3.17 | 2.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,394,000K ÷ $611,000K
= 2.28
Alliant Energy Corp.'s payables turnover has shown some fluctuations over the past five years. The payables turnover ratio indicates how efficiently the company is managing its trade payables by measuring how many times during a period the company pays off its average accounts payable balance.
In 2023, the payables turnover ratio stood at 2.65, which was an improvement compared to the previous year where it was 2.37. This suggests that Alliant Energy Corp. took slightly longer to pay off its accounts payable in 2023 compared to 2022. However, it is important to note that a higher payables turnover ratio does not always indicate a better performance, as it could also mean that the company is paying its suppliers too quickly and potentially missing out on cash discounts.
When looking at the trend over the past five years, the payables turnover ratio has decreased from 3.50 in 2019 to 2.65 in 2023. This declining trend may indicate that Alliant Energy Corp. is taking longer to pay its suppliers over time, which could have implications for its relationships with suppliers and its working capital management.
Overall, a careful analysis of Alliant Energy Corp.'s payables turnover ratio suggests that the company may need to further evaluate its payables management strategies to optimize its cash flow and relationships with suppliers.
Peer comparison
Dec 31, 2023