One Gas Inc (OGS)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,179,430	1,479,790	13,700	11,600	5,105
Payables	US$ in thousands	278,056	360,493	258,554	152,313	120,490
Payables turnover		4.24	4.10	0.05	0.08	0.04

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,179,430K ÷ $278,056K
= 4.24

The payables turnover ratio for ONE Gas Inc has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance.

In 2019, the payables turnover was 5.71, indicating that the company paid off its suppliers 5.71 times during the year. This high ratio suggests that ONE Gas Inc was efficient in managing its payables and had a shorter payment period.

In 2020, the ratio decreased to 3.53, which might indicate a slowdown in the payment to suppliers compared to the previous year. However, the ratio improved in 2021 to 3.00, showing a slight increase in the efficiency of payables management.

By the end of 2022, the payables turnover ratio remained relatively stable at 4.05 but increased slightly to 4.08 by the end of 2023. This suggests that the company is maintaining a consistent level of efficiency in managing its payables in recent years.

Overall, the payables turnover ratio for ONE Gas Inc indicates that the company has been reasonably effective in managing its accounts payable over the years, with some fluctuations that may be influenced by changes in payment policies or the company's relationships with suppliers.