Sempra Energy (SRE)
Payables turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 2,254,000 | 2,284,000 | 2,266,000 | 2,261,000 |
| Payables | US$ in thousands | 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 | 1,413,000 | 1,129,000 | 1,200,000 | 1,155,000 |
| Payables turnover | 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 | 1.60 | 2.02 | 1.89 | 1.96 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,123,000K ÷ $2,435,000K
= 1.28
The payables turnover ratio measures how efficiently a company manages its trade credit by comparing its purchases on credit to its average accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently and efficiently.
Based on the data provided for Sempra, we observe fluctuations in the payables turnover ratio over the past eight quarters. In Q1 2023, the payables turnover ratio was 2.63, indicating that Sempra paid its trade payables approximately 2.63 times during the quarter. This was a decrease from the previous quarter's ratio of 2.84 in Q2 2023.
The downward trend in payables turnover from Q2 2023 to Q1 2023 suggests that Sempra may have been taking longer to pay its trade creditors during that period. This could be indicative of an increase in accounts payable aging or a change in the company's payment policies.
Conversely, looking back at previous quarters, we can see that in Q2 2022, Sempra had a payables turnover ratio of 2.24, and this ratio increased steadily in subsequent quarters, reaching a peak of 2.84 in Q2 2023.
Overall, while the payables turnover ratio for Sempra has shown some variations, it is crucial to assess these changes in conjunction with other financial metrics to gain a comprehensive understanding of the company's liquidity management and supplier relationships.
Peer comparison
Dec 31, 2023