Williams Companies Inc (WMB)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 832,000 | 805,000 | 781,000 | 783,000 | 787,000 | 835,000 | 916,000 | 910,000 | 870,000 | 783,000 | 708,000 | 662,000 | 631,000 | 1,002,000 | 964,000 | 977,000 | 2,092,000 | 2,345,000 | 2,371,000 | 2,503,000 |
| Payables | US$ in thousands | 1,613,000 | 1,137,000 | 1,192,000 | 1,042,000 | 1,379,000 | 1,358,000 | 1,146,000 | 1,258,000 | 2,327,000 | 2,613,000 | 2,496,000 | 1,584,000 | 1,746,000 | 1,674,000 | 611,000 | 538,000 | 482,000 | 464,000 | 769,000 | 359,000 |
| Payables turnover | 0.52 | 0.71 | 0.66 | 0.75 | 0.57 | 0.61 | 0.80 | 0.72 | 0.37 | 0.30 | 0.28 | 0.42 | 0.36 | 0.60 | 1.58 | 1.82 | 4.34 | 5.05 | 3.08 | 6.97 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $832,000K ÷ $1,613,000K
= 0.52
Williams Companies Inc's payables turnover has experienced fluctuations over the years, indicating changes in its ability to manage its payables effectively. The payables turnover ratio measures how many times a company pays off its accounts payable during a period.
From March 31, 2020, to June 30, 2021, the payables turnover ratio declined steadily from 6.97 to 1.58, suggesting a longer period for Williams Companies Inc to pay off its suppliers. This may indicate liquidity issues or changes in the company's payment policies or relationships with suppliers.
Subsequently, from September 30, 2021, to December 31, 2024, the payables turnover ratio showed more volatility, ranging between 0.36 and 0.80. A lower payables turnover ratio could suggest inefficiencies in managing payables or potential delays in payments to suppliers. The fluctuations in the ratio may be influenced by various factors such as changes in the company's cash flow, credit terms with suppliers, or changes in the industry dynamics.
Overall, a declining trend in the payables turnover ratio could raise concerns about the company's financial health and efficiency in managing its working capital. It would be important for stakeholders to further examine the reasons behind these fluctuations in order to assess the company's financial stability and operational effectiveness.
Peer comparison
Dec 31, 2024