Pinnacle West Capital Corp (PNW)

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 2,929,219 2,974,971 2,904,279 2,836,584 2,702,908 2,458,440 2,306,588 2,201,866 2,107,524 2,064,980 1,977,242 1,936,794 1,920,632 2,361,929 2,199,755 2,049,435 1,935,745 1,355,911 1,398,551 1,411,933
Payables US$ in thousands 442,455 404,971 436,808 361,410 430,425 475,362 436,308 343,255 393,083 353,591 377,157 309,145 318,585 288,265 316,230 301,325 346,448 276,117 327,969 263,656
Payables turnover 6.62 7.35 6.65 7.85 6.28 5.17 5.29 6.41 5.36 5.84 5.24 6.27 6.03 8.19 6.96 6.80 5.59 4.91 4.26 5.36

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,929,219K ÷ $442,455K
= 6.62

The payables turnover ratio for Pinnacle West Capital Corp. has shown fluctuations over the past eight quarters. The ratio measures how efficiently the company pays its suppliers. In Q4 2023, the payables turnover ratio was 4.05, indicating that the company paid its suppliers approximately 4 times during that quarter. This figure was lower than the previous quarter, Q3 2023, where the ratio was 4.62.

Looking at the trend over the past year, we can see an overall increasing pattern in the payables turnover ratio, with peaks in Q1 2023 (4.87) and Q3 2023 (4.62). This suggests an improvement in the company's ability to manage its accounts payable effectively. However, the ratio decreased in Q4 2023 compared to the previous quarter, which may indicate that the company took longer to pay its suppliers during that period.

Analyzing the payables turnover ratio helps assess the efficiency of the company's working capital management and its relationships with suppliers. It is important for investors and stakeholders to monitor this ratio to understand how the company is managing its financial obligations and its ability to maintain good relationships with suppliers.


Peer comparison

Dec 31, 2023