MGE Energy Inc (MGEE)

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	22,923	21,342	20,642	20,242	19,542	18,035	18,935	19,235	19,535	20,360	20,160	19,760	18,460	18,403	18,728	19,228	21,028	2,325	1,900	1,200
Payables	US$ in thousands	65,451	53,593	38,571	38,720	59,334	60,227	88,833	44,690	64,149	57,431	46,625	53,840	54,642	56,054	40,701	39,188	55,161	39,139	40,957	40,356
Payables turnover		0.35	0.40	0.54	0.52	0.33	0.30	0.21	0.43	0.30	0.35	0.43	0.37	0.34	0.33	0.46	0.49	0.38	0.06	0.05	0.03

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $22,923K ÷ $65,451K
= 0.35

The payables turnover ratio for MGE Energy Inc has exhibited fluctuations over the past few quarters. The ratio decreased from 0.35 at the end of December 2023 to 0.30 at the end of September 2023 and then increased to 0.54 at the end of June 2023. This indicates that the company took longer to pay its suppliers at the end of September but improved its efficiency in settling payables by June.

Comparing year-over-year performance, the payables turnover ratio has generally been improving for MGE Energy Inc. For instance, the ratio was significantly lower at 0.06 at the end of March 2019, indicating a notable increase in the efficiency of paying off payables by December 2023.

These trends suggest that, in recent quarters, MGE Energy Inc has improved its ability to manage its payables effectively, which could positively impact its working capital management and cash flow. However, it is essential to continue monitoring this ratio to ensure the company maintains efficient payment practices with its suppliers.