Spire Inc (SR)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	309,000	304,400	297,300	291,000	286,100	251,100	247,200	243,500	238,300	233,100	225,800	905,000	1,360,700	1,326,600	1,422,100	1,399,500	1,453,800	1,610,600	1,695,200	1,471,900
Payables	US$ in thousands	237,200	205,200	193,400	293,800	253,100	196,300	232,300	506,800	617,400	581,200	367,500	427,500	409,900	294,300	352,100	260,800	243,300	200,800	221,400	307,900
Payables turnover		1.30	1.48	1.54	0.99	1.13	1.28	1.06	0.48	0.39	0.40	0.61	2.12	3.32	4.51	4.04	5.37	5.98	8.02	7.66	4.78

September 30, 2024 calculation

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

The payables turnover ratio for Spire Inc has fluctuated over the past few years. It measures the efficiency with which the company is managing its accounts payable by indicating how many times during a period the company pays off its suppliers.

In the latest quarter, ending September 30, 2024, the payables turnover ratio stood at 1.30. This suggests that on average, Spire Inc pays off its suppliers approximately 1.30 times during the quarter. Compared to the previous quarter, the ratio has decreased from 1.48, indicating a slight decline in the efficiency of paying off suppliers.

Looking further back, the payables turnover ratio has shown varying trends over the last few years. The ratio reached its peak in December 2019 at 8.02 and has since fluctuated, occasionally decreasing before rebounding. It is important to note that a higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly, which can be a positive sign of good financial health and strong supplier relationships.

In contrast, a lower payables turnover ratio, as seen in some quarters for Spire Inc, could indicate inefficiencies in managing payables, potential cash flow issues, or strained supplier relationships. The company should closely monitor these fluctuations in the payables turnover ratio to ensure efficient management of its accounts payable and maintain healthy supplier relationships.