National Fuel Gas Company (NFG)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	786,579	268,869	298,568	438,815	557,249	596,050	634,020	592,123	520,850	490,860	440,267	343,606	291,878	284,262	291,535	301,900	250,643	262,877	239,581	133,503
Payables	US$ in thousands	165,068	101,200	93,996	105,390	152,193	91,808	119,497	168,387	178,945	145,320	135,775	129,934	171,655	113,470	107,305	96,905	134,126	94,123	106,938	126,985
Payables turnover		4.77	2.66	3.18	4.16	3.66	6.49	5.31	3.52	2.91	3.38	3.24	2.64	1.70	2.51	2.72	3.12	1.87	2.79	2.24	1.05

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $786,579K ÷ $165,068K
= 4.77

Payables turnover is a ratio that measures how efficiently a company is managing its accounts payable by evaluating how many times during a specific period its payables are paid off. Higher payables turnover ratios indicate that the company is paying off its suppliers more frequently, reflecting strong liquidity or favorable credit terms.

Looking at the data for National Fuel Gas Company, we observe fluctuations in the payables turnover ratio over the analyzed periods. In the most recent period ending on September 30, 2024, the payables turnover ratio was 4.77, suggesting that the company paid its suppliers almost 5 times during that period. This represents an increase compared to the previous quarter and reflects a more efficient management of accounts payables.

Analyzing further, we can see that the company's payables turnover ratio has varied over the past several quarters, with some quarters showing higher ratios (e.g., 6.49 in June 2023) and others, lower (e.g., 1.70 in September 2021). These fluctuations could be influenced by factors such as changes in the company's purchasing practices, negotiation of payment terms with suppliers, or overall liquidity position.

Overall, National Fuel Gas Company's payables turnover ratio trend indicates a fluctuating but relatively stable pattern of managing its accounts payable. It is essential for investors and stakeholders to monitor these fluctuations to understand the company's payment behavior and financial management practices.