National Fuel Gas Company (NFG)

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	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	141,764	137,414	130,803
Payables	US$ in thousands	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	132,208	112,782	141,851
Payables turnover		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	1.07	1.22	0.92

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $438,815K ÷ $105,390K
= 4.16

The payables turnover ratio for National Fuel Gas Co. has fluctuated over the past eight quarters, ranging from a low of 2.19 in Q4 2022 to a high of 5.16 in Q3 2023. The payables turnover ratio measures how efficiently the company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance during a certain period.

A higher payables turnover ratio generally indicates that the company is able to quickly pay off its suppliers and vendors, which can be a positive sign of good liquidity and efficient working capital management. Conversely, a lower ratio may suggest that the company is taking longer to settle its payables, potentially signaling cash flow issues or inefficiencies in managing its payables.

In this case, the recent upward trend in the payables turnover ratio from Q1 2023 to Q3 2023 indicates an improvement in the company's ability to efficiently manage its payables. However, the fluctuation in the ratio over the quarters may also reflect changes in the company's payment terms with its suppliers or variations in its purchasing and operating activities.

Overall, a careful analysis of the factors influencing the payables turnover ratio, along with consideration of industry benchmarks and trends, will be necessary to fully evaluate National Fuel Gas Co.'s payables management efficiency and financial health.