NRG Energy Inc. (NRG)
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 | 29,518,000 | 31,343,000 | 32,455,000 | 33,338,000 | 29,388,000 | 27,825,000 | 23,665,000 | 20,255,000 | 21,846,000 | 15,447,000 | 13,470,000 | 11,947,000 | 6,540,000 | 6,579,000 | 6,698,000 | 7,109,000 | 7,303,000 | 7,245,000 | 7,330,000 | 7,374,000 |
| Payables | US$ in thousands | 2,325,000 | 2,200,000 | 2,107,000 | 2,330,000 | 3,643,000 | 2,871,000 | 2,933,000 | 2,216,000 | 2,274,000 | 1,967,000 | 2,166,000 | 2,216,000 | 649,000 | 753,000 | 736,000 | 708,000 | 722,000 | 866,000 | 723,000 | 697,000 |
| Payables turnover | 12.70 | 14.25 | 15.40 | 14.31 | 8.07 | 9.69 | 8.07 | 9.14 | 9.61 | 7.85 | 6.22 | 5.39 | 10.08 | 8.74 | 9.10 | 10.04 | 10.11 | 8.37 | 10.14 | 10.58 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $29,518,000K ÷ $2,325,000K
= 12.70
The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times a company pays off its suppliers within a specific period. A higher payables turnover ratio indicates a company is paying off its suppliers more frequently.
By analyzing the payables turnover ratios of NRG Energy Inc. over the past eight quarters, we observe fluctuations in the efficiency of the company's accounts payable management. In Q4 2023, the payables turnover ratio was 11.52, showing that NRG Energy Inc. paid off its suppliers approximately 11.52 times during that quarter. This ratio decreased from the previous quarter's 13.13, indicating a slight decline in the efficiency of payables management.
Comparing the Q4 ratios of the years 2023 and 2022, we see an improvement in 2023 where the ratio increased from 7.54 to 11.52. This shows enhanced efficiency in managing accounts payable during the same quarter between the two years.
Overall, the trend of increasing payables turnover ratios from Q2 2022 to Q2 2023 suggests that NRG Energy Inc. has been managing its accounts payable more efficiently over the past year. However, the recent decrease in Q4 2023 may warrant further investigation to determine the underlying reasons for the decline in payables turnover efficiency.
Peer comparison
Dec 31, 2023