UNITIL Corporation (UTL)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	334,300	340,300	352,200	294,300	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
Payables	US$ in thousands	49,700	36,200	37,200	37,900	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
Payables turnover		6.73	9.40	9.47	7.77	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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $334,300K ÷ $49,700K
= 6.73

To analyze the payables turnover of UNITIL Corporation based on the provided data, we calculate the payables turnover ratio by dividing purchases by average accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Looking at the data over the past few years, we observe fluctuations in UNITIL Corporation's payables turnover ratio. The ratio ranged from a low of 5.31 on March 31, 2020, to a high of 10.58 on September 30, 2022.

Between March 31, 2020, and December 31, 2024, the payables turnover ratio generally increased, implying that UNITIL Corporation has been paying its suppliers more often during this period. Notably, there were some peaks in the ratio, such as on June 30, 2022, and September 30, 2023, where the company demonstrated significantly higher turnover rates.

However, it is important to consider the industry norms and peer comparisons to gain further insight into the efficiency of UNITIL Corporation's payables management. Overall, an increasing payables turnover ratio can indicate effective cash flow management and favorable supplier relationships.