MDU Resources Group Inc (MDU)

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	3,300,705	3,846,935	4,655,905	5,203,890	5,007,047	4,774,031	4,439,981	4,200,881	4,104,943	4,094,200	4,096,220	4,049,090	4,058,931	4,050,309	4,047,309	4,038,969	3,919,483	3,795,296	3,579,067	3,436,661
Payables	US$ in thousands	475,215	414,479	399,339	547,188	525,560	452,379	394,317	449,746	478,933	525,704	431,878	379,348	426,264	436,718	433,362	384,339	403,391	378,370	356,059	352,180
Payables turnover		6.95	9.28	11.66	9.51	9.53	10.55	11.26	9.34	8.57	7.79	9.48	10.67	9.52	9.27	9.34	10.51	9.72	10.03	10.05	9.76

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,300,705K ÷ $475,215K
= 6.95

MDU Resources Group Inc's payables turnover ratio has shown fluctuations over the past eight quarters, ranging from a low of 1.16 in Q3 2022 to a high of 2.38 in Q2 2023. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher ratio generally indicates that the company is managing its payables effectively by paying its suppliers more quickly.

The company's payables turnover ratio has been increasing overall since Q3 2022, which could suggest that MDU Resources Group Inc has been improving its payables management and paying its suppliers more efficiently. However, the ratio experienced a slight dip in Q4 2023 compared to the previous two quarters. This fluctuation may warrant further investigation to understand the factors driving the change in payables turnover.

Overall, a rising trend in payables turnover ratio is generally a positive indicator of effective cash flow management and strong supplier relationships for MDU Resources Group Inc.