WEC Energy Group Inc (WEC)

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	3,551,100	4,108,300	4,324,000	4,720,300	4,785,200	4,361,000	4,108,000	3,694,300	3,570,900	3,239,800	3,165,700	3,082,600	2,549,000	2,602,800	2,601,100	2,650,100	2,920,500	3,087,600	3,127,300	3,181,300
Payables	US$ in thousands	896,600	867,700	748,500	680,000	1,198,100	1,158,000	1,078,200	693,700	1,005,700	872,800	744,600	656,000	880,700	751,300	696,600	597,900	908,100	769,000	715,600	674,100
Payables turnover		3.96	4.73	5.78	6.94	3.99	3.77	3.81	5.33	3.55	3.71	4.25	4.70	2.89	3.46	3.73	4.43	3.22	4.02	4.37	4.72

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,551,100K ÷ $896,600K
= 3.96

The payables turnover ratio measures how efficiently WEC Energy Group Inc is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Analyzing the data provided, we observe fluctuations in the payables turnover ratio over the past eight quarters. In Q1 2023, the payables turnover ratio was at its highest at 6.30, indicating that the company took approximately 6.30 quarters to pay off its suppliers during that period. This suggests efficient management of accounts payable during Q1 2023.

On the other hand, in Q3 2022 and Q4 2022, the payables turnover ratios were 3.53 and 3.64 respectively, indicating a slower rate of paying off suppliers during those quarters.

Overall, it is essential for WEC Energy Group Inc to consistently monitor its payables turnover ratio to ensure efficient management of accounts payable and maintain good relationships with suppliers.