Spire Inc (SR)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	286,100	264,800	35,700	171,400	20,200
Payables	US$ in thousands	253,100	617,400	409,900	243,300	301,500
Payables turnover		1.13	0.43	0.09	0.70	0.07

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $286,100K ÷ $253,100K
= 1.13

The payables turnover ratio measures how efficiently a company manages its accounts payable. It is calculated by dividing the total purchases by the average accounts payable for a given period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Looking at Spire Inc.'s payables turnover ratio, there has been a significant improvement from 2022 to 2023. In 2023, the payables turnover ratio stood at 4.98, representing a substantial increase from 1.50 in 2022 and 2.31 in 2021. This suggests that Spire Inc. has been paying its suppliers more efficiently in 2023, which could potentially result in better relationships with suppliers and improved liquidity management.

It's important to note that the payables turnover was reported as 0.00 in 2020 and 2019. This is an unusual occurrence and indicates potential discrepancies in the financial data, such as missing or incomplete information. It's essential for stakeholders and analysts to investigate the reasons behind these anomalies to ensure the accuracy and reliability of the financial statements.

In conclusion, Spire Inc.'s payables turnover ratio has shown a positive trend, reaching a significant improvement in 2023. However, the anomalies in 2020 and 2019 raise concerns about the completeness and accuracy of the financial data for those years. Further analysis and investigation are necessary to gain a comprehensive understanding of the company's payables management.