SM Energy Co (SM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	690,936	748,282	656,832	1,512,930	671,364
Payables	US$ in thousands	107,315	43,898	25,072	63,006	52,094
Payables turnover		6.44	17.05	26.20	24.01	12.89

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $690,936K ÷ $107,315K
= 6.44

The payables turnover ratio for SM Energy Co has consistently been 0.00 for the past five years, indicating that the company is not effectively managing its accounts payable. A low or zero payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships and lead to unfavorable credit terms. It is important for the company to closely monitor and improve its payables turnover ratio to ensure efficient management of working capital and maintain good relationships with its suppliers.