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