Southwest Gas Holdings Inc (SWX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,147,060 | 3,093,160 | 2,406,850 | 2,124,920 | 1,938,790 |
| Payables | US$ in thousands | 346,907 | 662,090 | 353,365 | 231,301 | 238,921 |
| Payables turnover | 9.07 | 4.67 | 6.81 | 9.19 | 8.11 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,147,060K ÷ $346,907K
= 9.07
The payables turnover ratio for Southwest Gas Holdings Inc has shown significant fluctuations over the past five years. In 2023, the payables turnover ratio improved to 3.61 times, indicating that the company is paying its suppliers more frequently during the year compared to the previous years. This could suggest improved liquidity or more efficient management of payables.
However, in 2022, the payables turnover ratio was significantly lower at 1.21 times, which may indicate that the company took longer to pay its suppliers that year. The ratios for 2021, 2020, and 2019 were also relatively low at 1.22, 1.48, and 1.61, respectively.
Overall, the trend in payables turnover suggests that Southwest Gas Holdings Inc may have improved its ability to manage its payables more efficiently in 2023 compared to prior years. An increasing payables turnover ratio indicates that the company is paying its suppliers more rapidly, potentially improving relationships with suppliers and enhancing cash flow management.
Peer comparison
Dec 31, 2023