MGE Energy Inc (MGEE)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.35 | 0.33 | 0.30 | 0.34 | 0.36 | |
| Number of days of payables | days | 1,046.73 | 1,108.22 | 1,198.59 | 1,080.41 | 1,006.79 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.35
= 1,046.73
The number of days of payables for MGE Energy Inc has shown a fluctuating trend over the past five years. In 2023, the number of days of payables was 1,046.73 days, which decreased from 1,108.22 days in 2022. However, it is higher compared to the number of days of payables in 2021 and 2020, which were 1,198.59 days and 1,080.41 days, respectively. The lowest number of days of payables in the last five years was recorded in 2019 at 1,006.79 days.
The decreasing trend from 2022 to 2023 indicates that MGE Energy Inc is taking fewer days to pay off its short-term obligations to suppliers. However, the overall trend in the number of days of payables over the past five years suggests that the company typically takes around 1,000 to 1,200 days to settle its payables. It is essential to closely monitor this ratio to ensure effective management of working capital and relationships with suppliers.