Spire Inc (SR)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	309,000	286,100	264,800	35,700	171,400
Payables	US$ in thousands	237,200	253,100	617,400	409,900	243,300
Payables turnover		1.30	1.13	0.43	0.09	0.70

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $309,000K ÷ $237,200K
= 1.30

Spire Inc's payables turnover ratio has exhibited a fluctuating trend over the past five years. The ratio indicates the number of times a company pays off its accounts payable during a specific period.

In 2024, the payables turnover ratio improved to 1.30, representing an increase from the previous year. This suggests that Spire Inc was able to manage its accounts payable more efficiently, paying off its suppliers at a faster rate compared to the previous year.

However, in 2023, the payables turnover ratio decreased to 1.13 from the prior year's 0.43, indicating a temporary slowdown in the rate at which Spire Inc was settling its payables. This could be attributed to various factors such as changes in payment terms or the company's overall financial performance.

The ratio was particularly low in 2022 and 2021 at 0.43 and 0.09, respectively, suggesting that Spire Inc took longer to pay off its accounts payable during these years. A low payables turnover ratio could indicate liquidity issues, inefficiencies in the company's payment processes, or strained relationships with suppliers.

The ratio increased to 0.70 in 2020, showing some improvement from the previous year but still below the ideal level. Overall, Spire Inc's payables turnover ratio has been volatile, with fluctuations reflecting changes in the company's payment policies, financial position, and relationships with suppliers. It would be important for Spire Inc to monitor and manage its payables turnover effectively to ensure optimal working capital management.