UNITIL Corporation (UTL)

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	324,200	361,300	369,200	416,400	394,200	372,400	362,400	361,700	311,500	219,900	210,900	199,300	197,800	197,700	193,700	140,800	58,400	59,900	62,900	63,200
Payables	US$ in thousands	47,700	35,600	36,700	46,300	68,600	35,200	34,300	39,000	52,400	29,500	32,600	28,700	33,200	25,100	24,700	26,500	37,600	22,900	21,900	33,000
Payables turnover		6.80	10.15	10.06	8.99	5.75	10.58	10.57	9.27	5.94	7.45	6.47	6.94	5.96	7.88	7.84	5.31	1.55	2.62	2.87	1.92

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $324,200K ÷ $47,700K
= 6.80

The payables turnover ratio measures how efficiently a company pays its suppliers. A higher payables turnover ratio indicates that the company is managing its accounts payable effectively by paying its suppliers quickly.

From the data provided, Unitil Corp.'s payables turnover ratio has been fluctuating over the past eight quarters. The ratio ranged from 4.67 to 9.47, with an average of approximately 7.61 during this period.

In Q3 2023, Unitil Corp. had a notably high payables turnover of 9.47, suggesting that the company was efficient in paying its suppliers. This is an improvement compared to the previous quarters. However, it is essential to understand the reasons behind this increase, such as changes in payment terms or improved financial management.

In Q1 2023 and Q4 2022, the payables turnover ratios were lower, indicating that Unitil Corp. took longer to pay its suppliers during these periods. This might have been influenced by various factors such as changes in business operations, cash flow constraints, or negotiations with suppliers.

Overall, fluctuations in the payables turnover ratio reflect changes in Unitil Corp.'s accounts payable management. By analyzing trends in this ratio over time, stakeholders can gain insights into the company's financial health and efficiency in managing its working capital.