National Fuel Gas Company (NFG)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	557,249	520,851	291,877	342,915	141,764
Payables	US$ in thousands	152,193	178,945	171,655	134,126	132,208
Payables turnover		3.66	2.91	1.70	2.56	1.07

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $557,249K ÷ $152,193K
= 3.66

The payables turnover ratio measures how efficiently a company is managing its trade payables by comparing the cost of goods sold to average accounts payable. A higher ratio typically indicates that the company is paying off its suppliers more quickly.

Looking at National Fuel Gas Co.'s payables turnover ratio over the past five years, we can observe fluctuations in the efficiency of managing its trade payables.

In 2019, the company had a relatively high payables turnover of 4.22, indicating a rapid turnover of its accounts payable. However, this ratio dropped to 3.09 in 2020 before further declining to 1.00 in 2021, suggesting a slower rate of paying off suppliers during these years.

The payables turnover ratio then increased to 2.19 in 2022, showing some improvement from the previous year. Finally, in 2023, the ratio further increased to 2.88, indicating a more efficient management of trade payables compared to the previous year.

Overall, the fluctuating trend in National Fuel Gas Co.'s payables turnover ratio suggests varying levels of efficiency in managing its trade payables over the past five years. This could be influenced by changes in the company's purchasing and payment policies, supplier relationships, or overall business operations.