Nextera Energy Inc (NEE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,437,000 | 6,937,000 | 6,077,000 | 6,132,000 | 6,383,000 |
| Payables | US$ in thousands | 1,861,000 | 1,760,000 | 1,378,000 | 991,000 | 1,152,000 |
| Payables turnover | 4.53 | 3.94 | 4.41 | 6.19 | 5.54 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,437,000K ÷ $1,861,000K
= 4.53
NextEra Energy Inc's payables turnover has shown a declining trend over the past five years, decreasing from 1.20 in 2019 to 0.64 in 2023. This indicates that the company is taking longer to pay off its accounts payable relative to its cost of goods sold or total purchases. A lower payables turnover ratio may suggest a slower payment cycle, possibly due to negotiating better payment terms with suppliers or potential liquidity constraints. It is important for the company to carefully manage its payables turnover to maintain good relationships with suppliers while also optimizing cash flow and working capital efficiency.
Peer comparison
Dec 31, 2023