NRG Energy Inc. (NRG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 29,555,000 | 29,429,000 | 22,873,000 | 6,540,000 | 7,303,000 |
| Payables | US$ in thousands | 2,325,000 | 3,643,000 | 2,274,000 | 649,000 | 722,000 |
| Payables turnover | 12.71 | 8.08 | 10.06 | 10.08 | 10.11 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $29,555,000K ÷ $2,325,000K
= 12.71
The payables turnover ratio measures how efficiently a company manages its accounts payables by comparing the cost of goods sold to the average accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.
Over the past five years, NRG Energy Inc.'s payables turnover has shown some fluctuations. In 2023, the payables turnover ratio increased to 11.52 from 7.54 in 2022, indicating that the company was able to pay its suppliers more frequently during the most recent year. This may suggest effective management of accounts payable and improved liquidity.
Compared to 2021 and 2020, where the payables turnover ratios were 9.31 and 10.08 respectively, the increase in 2023 shows a positive trend in the company's payables management. However, the payables turnover ratio in 2019 was slightly higher at 10.11 compared to 2023.
Overall, the increasing trend in NRG Energy Inc.'s payables turnover ratio from 2019 to 2023 suggests that the company has been more efficient in managing its payables and paying its suppliers faster. This can have potential benefits such as improved relationships with suppliers, better access to credit terms, and enhanced financial health.
Peer comparison
Dec 31, 2023