One Gas Inc (OGS)

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	1,177,829	1,394,943	1,450,230	1,507,340	1,478,887	502,525	436,227	341,077	13,700	154,035	134,621	102,430	11,600	327,939	289,554	309,632	448,569	778,165	923,764	1,038,330
Payables	US$ in thousands	278,056	168,648	154,121	197,619	360,493	191,117	186,425	209,756	258,554	127,544	158,353	227,955	152,313	65,311	62,710	82,088	120,490	62,575	67,578	119,629
Payables turnover		4.24	8.27	9.41	7.63	4.10	2.63	2.34	1.63	0.05	1.21	0.85	0.45	0.08	5.02	4.62	3.77	3.72	12.44	13.67	8.68

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,177,829K ÷ $278,056K
= 4.24

ONE Gas Inc's payables turnover has been fluctuating over the past eight quarters, ranging from a low of 4.05 in Q4 2022 to a high of 9.26 in Q2 2023. The payables turnover ratio calculates how many times a company pays off its average accounts payable balance during a period.

A higher payables turnover ratio indicates that the company is managing its accounts payable efficiently by paying off its obligations more frequently. In contrast, a lower ratio may signal that the company is taking longer to pay its bills, which could lead to strained relationships with suppliers or missed opportunities for early payment discounts.

In the most recent quarter, Q4 2023, ONE Gas Inc's payables turnover was 4.08, which is lower than the previous quarter but still within a reasonable range compared to historical data. Analysts will need to further investigate the reasons behind the fluctuations in the payables turnover ratio to assess the company's payment practices and supplier relationships.