Essential Utilities Inc (WTRG)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	367,214	21,758	19,569	15,445	333,102
Payables	US$ in thousands	221,191	238,843	192,932	177,489	74,919
Payables turnover		1.66	0.09	0.10	0.09	4.45

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $367,214K ÷ $221,191K
= 1.66

The payables turnover ratio for Essential Utilities Inc has fluctuated over the past five years. In 2023, the payables turnover ratio was 1.59, indicating that the company paid off its accounts payables approximately 1.59 times during the year. This represents a decrease from the previous year when the ratio was 2.52.

The decrease in the payables turnover ratio from 2022 to 2023 suggests that the company took longer to pay off its accounts payables compared to the prior year. It could indicate a change in the company's payment terms with its suppliers or potential issues with managing its payables effectively.

It is worth noting that the payables turnover ratio was significantly lower in 2020 and 2019, with values of 0.00, indicating that in those years, the company either did not have any payables or did not make any payments towards its payables during those periods.

Overall, the trend in Essential Utilities Inc's payables turnover ratio indicates potential changes in the company's accounts payable management and payment practices, warranting further investigation into the reasons behind the fluctuations observed.