Southern Company (SO)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.65 | 0.60 | 0.81 | 0.74 | 0.89 | |
| Number of days of payables | days | 559.67 | 604.05 | 448.80 | 491.20 | 408.67 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.65
= 559.67
The number of days of payables for Southern Company has shown fluctuations over the past five years. In 2023, the number of days of payables increased to 141.94 days from 108.78 days in 2022. This indicates that the company took longer to pay off its accounts payable in 2023 compared to the previous year.
The trend of the number of days of payables has been erratic, with decreases in 2021 and 2019, but increases in 2020 and 2023. In 2020, the number of days of payables spiked to 166.61 days, reflecting a significant delay in settling payables. The company managed to reduce this figure in 2021 to 113.68 days, but it increased again in 2022 and 2023.
Overall, the variability in the number of days of payables suggests that Southern Company's payables management may not be consistent or optimized. Further analysis of the company's liquidity position and payment policies may help in understanding the reasons behind these fluctuations and in identifying opportunities for improvement in payables management.
Peer comparison
Dec 31, 2023