PNM Resources Inc (PNM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,283,370 | 1,509,100 | 1,130,920 | 916,285 | 470,643 |
| Payables | US$ in thousands | 205,175 | 215,708 | 172,595 | 169,317 | 103,118 |
| Payables turnover | 6.26 | 7.00 | 6.55 | 5.41 | 4.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,283,370K ÷ $205,175K
= 6.26
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating the number of times a company pays off its suppliers within a certain period. A higher payables turnover ratio typically indicates that a company is paying its suppliers more frequently, which may signify good liquidity and strong vendor relationships.
In the case of PNM Resources Inc, the payables turnover ratio has fluctuated over the past five years, ranging from 3.46 to 5.39. The trend shows some variability, with a peak in 2019 at 5.39, a decrease in 2020, a subsequent increase in 2022, and a slight decrease in 2023. The most recent payables turnover ratio for 2023 is 4.36, which suggests that PNM Resources Inc paid its suppliers approximately 4.36 times during the year.
Overall, the payables turnover ratio for PNM Resources Inc indicates that the company is effectively managing its accounts payable and maintaining a relatively consistent pace of payments to its suppliers. However, further analysis and comparison with industry peers and historical performance may provide additional insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2023