OGE Energy Corporation (OGE)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,567,300	2,235,100	2,647,000	1,917,800	1,236,500
Payables	US$ in thousands	276,400	448,900	274,000	251,500	194,900
Payables turnover		5.67	4.98	9.66	7.63	6.34

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,567,300K ÷ $276,400K
= 5.67

The payables turnover ratio for Oge Energy Corp. has shown variability over the past five years. In 2023, the payables turnover ratio was 3.30, indicating that the company took approximately 3.30 times to pay off its trade payables during the year. This ratio decreased compared to 2022 when it was 3.70.

In 2021, the payables turnover ratio significantly increased to 7.76, which suggests that the company managed to pay off its trade payables almost 8 times during the year. This sharp increase from the previous year's ratio of 2.56 could be indicative of more efficient management of payables during 2021.

The payables turnover ratio in 2020 was 4.04, showing a moderate decrease from the peak in 2021. This indicates that in 2020, Oge Energy Corp. took roughly 4 times to pay off its payable obligations.

Overall, the payables turnover ratio fluctuated over the years, reflecting changes in the company's payment practices and relationships with suppliers. It is essential to further analyze the reasons behind these fluctuations to understand the company's liquidity management and supplier relationships effectively.