MGE Energy Inc (MGEE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 22,823 | 19,542 | 19,535 | 18,460 | 19,998 |
| Payables | US$ in thousands | 65,451 | 59,334 | 64,149 | 54,642 | 55,161 |
| Payables turnover | 0.35 | 0.33 | 0.30 | 0.34 | 0.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $22,823K ÷ $65,451K
= 0.35
The payables turnover ratio for MGE Energy Inc has been relatively stable over the past five years, ranging from 0.30 to 0.36. This ratio indicates the number of times MGE Energy Inc pays off its suppliers during a specific period. A higher payables turnover ratio typically suggests that the company is efficiently managing its accounts payable by paying its suppliers more frequently.
In the case of MGE Energy Inc, the slight fluctuations in the payables turnover ratio suggest a consistent approach to managing its payables. The company has maintained an average payables turnover ratio of around 0.34 over the past five years, indicating that it takes approximately 1 to 3 months to pay off its suppliers.
Overall, the stability of MGE Energy Inc's payables turnover ratio reflects a consistent approach to managing its accounts payable, with no significant fluctuations observed over the five-year period.