MGE Energy Inc (MGEE)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 25,769 | 22,823 | 19,542 | 19,535 | 18,460 |
| Payables | US$ in thousands | 77,466 | 65,451 | 59,334 | 64,149 | 54,642 |
| Payables turnover | 0.33 | 0.35 | 0.33 | 0.30 | 0.34 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $25,769K ÷ $77,466K
= 0.33
Based on the payables turnover data provided for MGE Energy Inc, the company's payables turnover ratio has exhibited some fluctuations over the last five years. The payables turnover ratio, which measures how efficiently a company pays its suppliers, was at 0.34 on December 31, 2020, indicating that MGE Energy Inc took approximately 0.34 times to pay off its accounts payable during that period.
Subsequently, the payables turnover ratio decreased slightly to 0.30 on December 31, 2021, suggesting a lengthened payment period for the company's outstanding payables. However, there was a modest improvement in the ratio to 0.33 on December 31, 2022, before increasing further to 0.35 on December 31, 2023, indicating a more efficient payment cycle.
By the end of December 31, 2024, the payables turnover ratio had dropped back to 0.33, displaying a slight deterioration in the company's ability to manage its payables effectively compared to the previous year. Overall, while some fluctuations were observed in MGE Energy Inc's payables turnover ratio over the period analyzed, the company generally seems to have a stable approach to managing its accounts payable.