PPL Corporation (PPL)

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	739,000	806,000	874,000	1,010,000	1,023,000	969,000	897,000	790,000	755,000	730,000	712,000	654,000	640,000	641,000	658,000	688,000	719,000	801,000	813,000	1,340,000
Payables	US$ in thousands	1,104,000	1,178,000	975,000	1,133,000	1,201,000	968,000	985,000	686,000	679,000	635,000	683,000	660,000	745,000	864,000	804,000	833,000	956,000	846,000	830,000	823,000
Payables turnover		0.67	0.68	0.90	0.89	0.85	1.00	0.91	1.15	1.11	1.15	1.04	0.99	0.86	0.74	0.82	0.83	0.75	0.95	0.98	1.63

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $739,000K ÷ $1,104,000K
= 0.67

The payables turnover ratio for PPL Corp has shown fluctuations over the past eight quarters. In Q2 2023, the payables turnover ratio reached its highest point at 3.04, indicating that the company was able to pay off its accounts payable more frequently during that period compared to the previous quarters. This may suggest efficient management of vendor payments and potential strong working capital management.

However, the ratio decreased in Q3 2023 to 2.39 before dropping further to 2.33 in Q4 2023. While the payables turnover ratios in these quarters were still above 2, indicating that PPL Corp continued to effectively manage its accounts payable, the decreasing trend raises some concerns about the efficiency of payables management in these periods.

Comparing the ratios to the same quarters in the previous year, it is evident that the payables turnover ratio has generally improved, with Q2 2023 showing the most significant improvement compared to the same quarter in 2022. This improvement suggests that PPL Corp has become more efficient in managing its accounts payable over time.

Overall, while the recent decrease in payables turnover ratio in Q3 and Q4 2023 may raise some concerns, the general upward trend in the ratio over the past year indicates that PPL Corp has been effectively managing its accounts payable, although there may be room for improvement in certain periods.