Williams Companies Inc (WMB)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 836,000 | 792,000 | 882,000 | 631,000 | 2,092,000 |
| Payables | US$ in thousands | 1,613,000 | 1,379,000 | 2,327,000 | 1,746,000 | 482,000 |
| Payables turnover | 0.52 | 0.57 | 0.38 | 0.36 | 4.34 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $836,000K ÷ $1,613,000K
= 0.52
The payables turnover ratio of Williams Companies Inc has shown fluctuations over the past five years.
As of December 31, 2020, the payables turnover ratio was 4.34, indicating that the company was able to efficiently manage its accounts payable, with a high turnover rate.
However, there was a significant drop in the payables turnover ratio by the end of December 31, 2021, where it decreased to 0.36. This could suggest a decrease in the speed at which the company is paying its suppliers or a possible extension of payment terms.
In the subsequent years, the payables turnover ratio slightly increased to 0.38 by December 31, 2022, and further improved to 0.57 by December 31, 2023. This could indicate better management of payables and potentially more favorable payment terms negotiated by the company.
By December 31, 2024, the payables turnover ratio decreased slightly to 0.52. Despite the slight decline, the ratio has remained at a level that suggests the company is effectively managing its accounts payable.
Overall, the analysis of the payables turnover ratio for Williams Companies Inc indicates fluctuations in the efficiency of managing payables over the years, with some improvements seen in recent years, albeit with some slight variations.
Peer comparison
Dec 31, 2024