Sempra Energy (SRE)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,363,000 | 3,123,000 | 2,856,000 | 2,642,000 | 2,395,000 |
| Payables | US$ in thousands | 2,446,000 | 2,435,000 | 2,269,000 | 1,849,000 | 1,513,000 |
| Payables turnover | 1.37 | 1.28 | 1.26 | 1.43 | 1.58 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,363,000K ÷ $2,446,000K
= 1.37
The payables turnover ratio for Sempra Energy has shown a gradual decrease from 1.58 in December 2020 to 1.37 in December 2024. This indicates that the company's ability to efficiently manage its accounts payable has slightly declined over the period. A lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or lead to higher financing costs. It is important for Sempra Energy to monitor and improve this ratio to maintain strong vendor relations and optimize working capital management.
Peer comparison
Dec 31, 2024