Pinnacle West Capital Corp (PNW)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,961,980	2,702,910	2,136,060	1,920,630	1,935,740
Payables	US$ in thousands	442,455	430,425	393,083	318,585	346,448
Payables turnover		6.69	6.28	5.43	6.03	5.59

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,961,980K ÷ $442,455K
= 6.69

Pinnacle West Capital Corp.'s payables turnover ratio has shown a generally increasing trend over the past five years. The ratio increased from 3.01 in 2019 to 4.05 in 2023, indicating improvement in the company's ability to efficiently manage its accounts payables.

A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could be beneficial in terms of maintaining good relationships with suppliers and potentially negotiating better terms in the future.

Overall, the increasing trend in Pinnacle West Capital Corp.'s payables turnover ratio indicates that the company is effectively managing its accounts payables, which could be a positive sign of financial health and operational efficiency.