Sempra Energy (SRE)
Payables turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,363,000 | 3,289,000 | 3,232,000 | 3,170,000 | 3,123,000 | 3,042,000 | 2,978,000 | 2,932,000 | 2,856,000 | 2,793,000 | 2,747,000 | 2,697,000 | 2,642,000 | 2,560,000 | 2,508,000 | 2,444,000 | 2,399,000 | 2,373,000 | 2,332,000 | 2,296,000 |
| Payables | US$ in thousands | 2,446,000 | 2,193,000 | 2,010,000 | 2,189,000 | 2,435,000 | 2,453,000 | 2,024,000 | 2,405,000 | 2,269,000 | 2,161,000 | 1,819,000 | 1,546,000 | 1,849,000 | 1,579,000 | 1,459,000 | 1,495,000 | 1,513,000 | 1,292,000 | 1,447,000 | 1,201,000 |
| Payables turnover | 1.37 | 1.50 | 1.61 | 1.45 | 1.28 | 1.24 | 1.47 | 1.22 | 1.26 | 1.29 | 1.51 | 1.74 | 1.43 | 1.62 | 1.72 | 1.63 | 1.59 | 1.84 | 1.61 | 1.91 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,363,000K ÷ $2,446,000K
= 1.37
The payables turnover ratio measures how efficiently Sempra Energy is paying its suppliers or trade payables. A higher ratio typically indicates that the company is paying its suppliers more quickly.
Analyzing the payables turnover of Sempra Energy over the specified periods, we observe fluctuating trends. The ratio has ranged from a low of 1.22 on March 31, 2023, to a high of 1.91 on March 31, 2020. Lower ratios indicate that the company takes longer to pay its suppliers, potentially signaling cash flow issues or a deliberate strategy to delay payments.
It is worth noting that the payables turnover ratio has generally decreased over the periods, with a few fluctuations in between. This downward trend may suggest that Sempra Energy is taking longer to pay its suppliers, which could impact supplier relationships and possibly indicate inefficiencies in the payables management process.
Overall, a careful review of the payables turnover ratio trends for Sempra Energy reveals insights into the company's payment practices and liquidity management, highlighting areas that may require further attention or optimization.
Peer comparison
Dec 31, 2024