National Fuel Gas Company (NFG)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	786,578	557,249	520,851	291,877	342,915
Payables	US$ in thousands	165,068	152,193	178,945	171,655	134,126
Payables turnover		4.77	3.66	2.91	1.70	2.56

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $786,578K ÷ $165,068K
= 4.77

The payables turnover ratio for National Fuel Gas Company has shown an increasing trend over the past five years. In 2024, the company achieved a payables turnover ratio of 4.77, indicating that it was able to pay off its accounts payable 4.77 times during the year. This represents an improvement compared to the previous years, where the payables turnover ratios were 3.66 in 2023, 2.91 in 2022, 1.7 in 2021, and 2.56 in 2020.

A higher payables turnover ratio suggests that the company is managing its accounts payable more efficiently by either negotiating better payment terms with suppliers or paying off its debts more promptly. This can be a positive indicator of the company's liquidity and financial health. Overall, the increasing trend in National Fuel Gas Company's payables turnover ratio signals an improvement in its ability to manage its accounts payable effectively over the past five years.