UNITIL Corporation (UTL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	374,100	394,200	311,500	800	700
Payables	US$ in thousands	47,700	68,600	52,400	33,200	37,600
Payables turnover		7.84	5.75	5.94	0.02	0.02

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $374,100K ÷ $47,700K
= 7.84

The payables turnover ratio measures how efficiently Unitil Corp. is managing its accounts payable by paying its suppliers. A higher payables turnover indicates that the company is paying its suppliers more frequently during the period.

Looking at the trend over the past five years, Unitil Corp.'s payables turnover has shown some fluctuations. In 2023, the payables turnover ratio increased to 6.26 from 4.67 in 2022, indicating that the company paid its suppliers more frequently, which could potentially improve its relationships with suppliers and support a smoother supply chain.

Comparing the 2023 figure to previous years, the payables turnover ratio was lower than in 2020 when it was 6.12, but higher than in 2021 and 2019 when it was 4.63 and 5.94, respectively. This suggests that in 2023, Unitil Corp. was more efficient in managing its accounts payable compared to 2021 and 2019, but slightly less efficient than in 2020.

Overall, the increasing trend in Unitil Corp.'s payables turnover ratio indicates a positive direction in the company's management of its accounts payable.