Northwest Natural Gas Co (NWN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	192,148	177,161	169,022	152,958	171,357
Payables	US$ in thousands	145,361	180,667	133,486	97,966	113,370
Payables turnover		1.32	0.98	1.27	1.56	1.51

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $192,148K ÷ $145,361K
= 1.32

The payables turnover ratio for Northwest Natural Holding Co has shown fluctuations over the past five years. In 2023, the payables turnover ratio improved to 3.44, indicating that the company is managing its accounts payable more efficiently compared to the previous year. This increase suggests that Northwest Natural Holding Co is paying off its suppliers more frequently throughout the year.

However, it is essential to consider the trend over multiple years. In 2022, the payables turnover ratio was 2.38, which was lower than both 2023 and 2020 but higher than 2021 and 2019. This suggests some inconsistency in the company's accounts payable management.

Overall, the upward trend in the payables turnover ratio from 2019 to 2023 indicates an improvement in the efficiency of managing supplier payments. A higher payables turnover ratio generally indicates that a company is paying its suppliers more quickly, which can help improve relationships and potentially negotiate better terms in the future.