Vistra Energy Corp (VST)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,489,000 | 1,393,000 | 1,246,000 | 1,530,000 | 1,058,000 |
| Payables | US$ in thousands | 1,147,000 | 1,556,000 | 1,515,000 | 880,000 | 947,000 |
| Payables turnover | 1.30 | 0.90 | 0.82 | 1.74 | 1.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,489,000K ÷ $1,147,000K
= 1.30
The payables turnover ratio for Vistra Corp has shown a generally increasing trend over the past five years, reflecting the company's ability to efficiently manage its accounts payable. The ratio increased from 6.06 in 2019 to 6.68 in 2022, indicating an improvement in the company's ability to pay off its creditors in a timely manner. However, there was a slight decrease in the ratio to 6.59 in 2023.
A payables turnover ratio above 1 generally indicates that the company is paying its suppliers quickly, which can be a positive signal as it may indicate good relationships with suppliers and potentially favorable credit terms.
Overall, Vistra Corp's payables turnover ratio suggests that the company has been effective in managing its accounts payable and maintaining good relationships with its suppliers over the past five years. However, it would be important to continue monitoring this ratio to ensure that the trend remains stable and indicative of efficient payables management.
Peer comparison
Dec 31, 2023