PBF Energy Inc (PBF)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	35,926,200	42,151,700	26,366,200	16,745,600	23,595,100
Payables	US$ in thousands	959,000	854,600	911,700	407,000	601,400
Payables turnover		37.46	49.32	28.92	41.14	39.23

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $35,926,200K ÷ $959,000K
= 37.46

The payables turnover ratio measures how efficiently a company is managing its trade payables relative to its cost of goods sold. A higher payables turnover ratio indicates that the company is taking fewer days to pay its suppliers, which can be a sign of strong liquidity and effective cash management.

Analyzing the trend of PBF Energy Inc's payables turnover over the past five years, we can see fluctuations in the ratio. In 2023, the payables turnover ratio decreased to 34.07 from 45.69 in 2022, suggesting a decrease in the rate at which the company is paying its suppliers relative to the cost of goods sold. This could indicate a potential delay in payments to suppliers or changes in the company's payment terms.

Comparing the ratio to previous years, we observe that 2022 had the highest payables turnover ratio of 45.69, indicating that PBF Energy Inc was more efficient in managing its trade payables that year. In contrast, 2021 had a lower ratio of 26.13, which may suggest a longer payment cycle or higher outstanding payables relative to the cost of goods sold.

Overall, fluctuations in payables turnover ratios over the years may reflect changes in the company's payment policies, supplier relationships, or overall business conditions. Further analysis and consideration of other financial metrics would be needed to gain a more comprehensive understanding of PBF Energy Inc's payables management efficiency.