Williams Companies Inc (WMB)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	792,000	882,000	631,000	2,092,000	1,405,000
Payables	US$ in thousands	1,379,000	2,327,000	1,746,000	482,000	552,000
Payables turnover		0.57	0.38	0.36	4.34	2.55

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $792,000K ÷ $1,379,000K
= 0.57

The payables turnover ratio for Williams Cos Inc has been gradually decreasing over the five-year period from 2019 to 2023. The ratio declined from 3.55 in 2019 to 1.37 in 2023. This indicates that the company took longer to pay its suppliers in 2023 compared to previous years. A lower payables turnover ratio may suggest inefficiencies in managing the company's accounts payable or possibly strained relationships with suppliers. Further analysis would be needed to understand the reasons behind the declining trend and to evaluate the impact on the company's liquidity and financial health.

Peer comparison

Dec 31, 2023

Company name

Symbol

Payables turnover

Williams Companies Inc

WMB

0.57

Antero Midstream Partners LP