WEC Energy Group Inc (WEC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,551,100 | 4,785,200 | 3,570,900 | 2,549,000 | 2,921,600 |
| Payables | US$ in thousands | 896,600 | 1,198,100 | 1,005,700 | 880,700 | 908,100 |
| Payables turnover | 3.96 | 3.99 | 3.55 | 2.89 | 3.22 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,551,100K ÷ $896,600K
= 3.96
The payables turnover ratio of WEC Energy Group Inc has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its suppliers each year.
In 2023, the payables turnover ratio was 3.56, a slight decrease from the previous year's ratio of 3.64 in 2022. This suggests that the company took slightly longer to pay off its suppliers in 2023 compared to the prior year.
Looking further back, in 2021, the payables turnover ratio was 3.29, showing a moderate improvement from 2.63 in 2020. This indicates that the company managed its payables more efficiently in 2021 compared to the previous year.
In 2019, the payables turnover ratio was 2.95, indicating a moderate increase from 2.63 in 2020. This suggests that the company improved its payables turnover efficiency in 2019 compared to 2020.
Overall, WEC Energy Group Inc has shown some variability in its payables turnover ratio over the past five years. It is important for the company to closely monitor this ratio to ensure effective management of its payables and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023