Xcel Energy Inc (XEL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	918,000	1,101,000	947,000	973,000	801,000
Payables	US$ in thousands	1,668,000	1,804,000	1,409,000	1,237,000	1,294,000
Payables turnover		0.55	0.61	0.67	0.79	0.62

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $918,000K ÷ $1,668,000K
= 0.55

The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its suppliers in a given period. A higher payables turnover ratio generally indicates that the company is managing its payable obligations effectively.

For Xcel Energy, Inc., the payables turnover ratio has been fluctuating over the past five years. In 2021, the ratio was at its highest at 4.15, indicating that the company paid off its suppliers more frequently during that year. This could point to improved liquidity or potentially better negotiation terms with suppliers.

In contrast, the ratio decreased in 2023 to 3.47, which suggests that Xcel Energy took longer to pay its suppliers compared to the previous year. While a decreasing ratio could potentially signal liquidity issues or strained supplier relationships, it is essential to consider industry norms and company-specific factors before making definitive conclusions.

Overall, the shifting payables turnover ratio for Xcel Energy, Inc. indicates varying degrees of efficiency in managing its accounts payable during the specified periods. Further analysis and comparison to industry benchmarks would provide a more comprehensive understanding of the company's payables management performance.