UNITIL Corporation (UTL)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	298,200	374,100	394,200	311,500	800
Payables	US$ in thousands	49,700	47,700	68,600	52,400	33,200
Payables turnover		6.00	7.84	5.75	5.94	0.02

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $298,200K ÷ $49,700K
= 6.00

Based on the data provided, UNITIL Corporation's payables turnover has significantly improved over the years, indicating the company is efficiently managing its accounts payable. The payables turnover ratio, which measures how many times a company pays off its accounts payable within a period, was very low at 0.02 as of December 31, 2020. However, it saw a sharp increase to 5.94 by December 31, 2021, showing a substantial improvement in the company's ability to settle its payables.

This positive trend continued over the following years, with the payables turnover reaching 5.75 as of December 31, 2022, 7.84 by December 31, 2023, and then slightly reducing to 6.00 as of December 31, 2024. Overall, the increasing payables turnover ratio reflects UNITIL Corporation's effectiveness in managing its trade credit obligations.