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.