Vistra Energy Corp (VST)
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 | 1,429,000 | 1,442,000 | 1,408,000 | 1,379,000 | 1,330,000 | 1,267,000 | 1,213,000 | 1,223,000 | 1,189,000 | 1,163,000 | 1,434,000 | 1,380,000 | 1,466,000 | 1,452,000 | 1,159,000 | 1,134,000 | 984,000 | 882,000 | 829,000 | 1,038,000 |
| Payables | US$ in thousands | 1,147,000 | 1,124,000 | 1,076,000 | 1,005,000 | 1,556,000 | 1,398,000 | 1,472,000 | 1,284,000 | 1,515,000 | 1,172,000 | 1,078,000 | 1,129,000 | 880,000 | 897,000 | 879,000 | 804,000 | 947,000 | 916,000 | 782,000 | 787,000 |
| Payables turnover | 1.25 | 1.28 | 1.31 | 1.37 | 0.85 | 0.91 | 0.82 | 0.95 | 0.78 | 0.99 | 1.33 | 1.22 | 1.67 | 1.62 | 1.32 | 1.41 | 1.04 | 0.96 | 1.06 | 1.32 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,429,000K ÷ $1,147,000K
= 1.25
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to average accounts payable. A higher payables turnover indicates that the company is paying its suppliers more quickly, which could be a sign of strong liquidity or effective management of working capital.
Analyzing Vistra Corp's payables turnover over the past eight quarters, we can see fluctuations in the ratio. In Q1 2023, the payables turnover was at its highest point of 10.24, indicating that Vistra Corp was paying its suppliers more frequently during that period. This could potentially suggest that the company was managing its working capital efficiently and maintaining strong liquidity.
On the other hand, in Q2 2022, the payables turnover ratio was at its lowest point of 5.13. This could indicate that Vistra Corp was taking longer to pay its suppliers during that quarter, which might be a strategy to hold onto cash or negotiate more favorable payment terms.
Overall, the trend in Vistra Corp's payables turnover ratio shows variability over the quarters, with some periods of faster payments to suppliers and others with slower payments. Further analysis would be required to understand the reasons behind these fluctuations and assess the impact on the company's financial performance and working capital management.
Peer comparison
Dec 31, 2023