Southern Company (SO)
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 | 1,891,000 | 1,223,000 | 1,235,000 | 1,244,000 | 1,222,000 | 1,561,000 | 1,521,000 | 1,717,000 | 2,274,000 | 1,603,000 | 1,667,000 | 1,568,000 | 1,410,000 | 2,074,000 | 2,121,000 | 2,012,000 | 1,577,000 | 1,739,000 | 1,681,000 | 1,910,000 |
| Payables | US$ in thousands | 2,898,000 | 2,942,000 | 2,493,000 | 2,365,000 | 3,525,000 | 3,079,000 | 2,908,000 | 2,251,000 | 2,169,000 | 2,229,000 | 2,075,000 | 2,058,000 | 2,312,000 | 1,924,000 | 1,787,000 | 1,653,000 | 2,115,000 | 1,898,000 | 1,978,000 | 2,037,000 |
| Payables turnover | 0.65 | 0.42 | 0.50 | 0.53 | 0.35 | 0.51 | 0.52 | 0.76 | 1.05 | 0.72 | 0.80 | 0.76 | 0.61 | 1.08 | 1.19 | 1.22 | 0.75 | 0.92 | 0.85 | 0.94 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,891,000K ÷ $2,898,000K
= 0.65
To analyze Southern Company's payables turnover based on the data provided, we can see fluctuations in the ratio over the past eight quarters. Payables turnover measures how efficiently a company manages its accounts payable by converting them into sales.
In Q1 2023, Southern Company's payables turnover ratio was 4.92, indicating that the company paid its suppliers almost 5 times during that quarter. This was a significant increase from the previous quarter, Q4 2022, where the ratio was 3.36.
The trend continued to show improvement in Q2 2023, with a payables turnover ratio of 4.20. However, there was a slight decrease in Q3 2023 to 3.00, followed by another reduction in Q4 2023 to 2.57.
Comparing these figures to the same quarters in the previous year, we see a mixed performance. While Q1 2023 showed a substantial increase from Q1 2022 (3.44), Q2 2023 (4.20) also performed better than Q2 2022 (3.11). However, Q3 and Q4 of 2023 had lower ratios compared to the same periods in 2022.
Overall, Southern Company's payables turnover ratio has shown variability over the eight quarters analyzed. It is essential for the company to maintain consistency in managing its accounts payable efficiently to improve cash flow and liquidity management.
Peer comparison
Dec 31, 2023