Public Service Enterprise Group Inc (PEG)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,591,000 | 4,685,000 | 4,876,000 | 7,311,000 | 3,061,000 |
| Payables | US$ in thousands | 1,136,000 | 1,214,000 | 1,271,000 | 1,315,000 | 1,332,000 |
| Payables turnover | 4.04 | 3.86 | 3.84 | 5.56 | 2.30 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,591,000K ÷ $1,136,000K
= 4.04
The payables turnover ratio, which measures how efficiently a company manages its accounts payable, has shown fluctuations for Public Service Enterprise Group Inc over the past five years.
In 2020, the payables turnover ratio was 2.30, indicating that the company turned over its payables approximately 2.30 times during the year. This suggests a moderate efficiency in managing its accounts payable.
By the end of 2021, the payables turnover ratio had improved significantly to 5.56, reflecting a more efficient management of accounts payable. This sharp increase could be attributed to various factors such as renegotiating payment terms with suppliers or streamlining operational processes.
However, in 2022, the payables turnover ratio decreased to 3.84, indicating a slight decline in the efficiency of managing accounts payable compared to the prior year. This could signal potential issues such as changes in payment terms or delays in processing payables.
The ratio remained relatively stable in 2023 at 3.86, suggesting that the company maintained a similar level of efficiency in managing its payables compared to the previous year.
In 2024, there was a slight improvement in the payables turnover ratio to 4.04, indicating a modest increase in the efficiency of managing accounts payable. This improvement could be a result of optimizing vendor relationships or enhancing internal processes.
Overall, Public Service Enterprise Group Inc's payables turnover ratio has shown fluctuations over the years, with some years demonstrating improved efficiency in managing accounts payable while others showing slight declines. It would be advisable for the company to continue monitoring this ratio and implementing strategies to maintain or enhance its efficiency in managing payables.
Peer comparison
Dec 31, 2024