NorthWestern Corporation (NWE)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 139,374 | 131,851 | 126,282 |
| Payables | US$ in thousands | 111,794 | 93,748 | 91,258 |
| Payables turnover | 1.25 | 1.41 | 1.38 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $139,374K ÷ $111,794K
= 1.25
The payables turnover ratio is a measure of how efficiently a company is managing its trade credit obligations. For NorthWestern Corporation, the payables turnover ratio for the periods ending June 30, 2024, September 30, 2024, and December 31, 2024, were 1.38, 1.41, and 1.25, respectively.
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within the period, which could suggest good liquidity and strong relationships with suppliers. In contrast, a lower payables turnover ratio may indicate that the company is taking longer to pay its trade payables, potentially signaling liquidity issues or strained supplier relationships.
The slight fluctuations in NorthWestern Corporation's payables turnover ratio over the analyzed periods suggest some variability in how the company manages its trade credit obligations. It would be important to further analyze the reasons behind these changes and monitor them over time to assess the company's overall financial health and efficiency in managing its payables.
Peer comparison
Dec 31, 2024