Williams Companies Inc (WMB)
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 | 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 | 1,467,000 | 1,104,000 | 1,138,000 | 1,711,000 |
| Payables | US$ in thousands | 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 | 552,000 | 602,000 | 627,000 | 620,000 |
| Payables turnover | 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 | 2.66 | 1.83 | 1.81 | 2.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $787,000K ÷ $1,379,000K
= 0.57
The payables turnover ratio for Williams Cos Inc has fluctuated over the past eight quarters, ranging from a low of 1.37 in Q4 2023 to a high of 2.48 in Q1 2023. This ratio measures how efficiently the company is managing its accounts payable by indicating the number of times the company pays off its suppliers during a specific period.
A higher payables turnover indicates that the company is paying off its suppliers more frequently, which could be a sign of strong liquidity management. Conversely, a lower payables turnover could suggest that the company is taking longer to pay its suppliers, potentially straining supplier relationships.
In the most recent quarters, the payables turnover ratio has been trending downwards, indicating that Williams Cos Inc may be taking longer to pay its suppliers. Further analysis is needed to determine the reasons for this trend and its potential impact on the company's financial health and supplier relationships.
Peer comparison
Dec 31, 2023