PPL Corporation (PPL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 791,000 | 743,000 | 1,160,000 | 763,000 | 649,000 |
| Payables | US$ in thousands | 1,196,000 | 1,104,000 | 1,201,000 | 679,000 | 745,000 |
| Payables turnover | 0.66 | 0.67 | 0.97 | 1.12 | 0.87 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $791,000K ÷ $1,196,000K
= 0.66
The payables turnover ratio of PPL Corporation has shown fluctuations over the past five years. In 2020, the payables turnover ratio was 0.87, indicating that the company took approximately 0.87 times to pay off its accounts payable during that year.
By the end of 2021, there was an improvement in the payables turnover ratio, which increased to 1.12. This suggests that PPL Corporation speeded up its payments to suppliers and vendors compared to the previous year. However, in 2022, the ratio slightly decreased to 0.97, which indicates a slight slowing down of payables turnover.
The payables turnover ratio took a significant drop in 2023, reaching 0.67. This could imply that PPL Corporation took longer to pay off its accounts payable during this period. In the most recent year, the ratio remained low at 0.66, suggesting that the company's ability to manage its accounts payable efficiently may have remained a challenge.
Overall, the trend in the payables turnover ratio for PPL Corporation shows some inconsistency, with periods of improvement followed by declines. Further analysis of the company's payment practices and relationships with suppliers may provide insights into the reasons behind these fluctuations.
Peer comparison
Dec 31, 2024