AAON Inc (AAON)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 35.34 | 17.14 | 16.34 | 34.63 | 34.83 | |
| Number of days of payables | days | 10.33 | 21.30 | 22.34 | 10.54 | 10.48 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 35.34
= 10.33
The number of days of payables for AAON Inc. has shown some fluctuations over the past five years. In 2023, the company had 13.04 days of payables, indicating that on average, AAON takes approximately 13 days to pay its suppliers. This is a significant decrease from 25.51 days in 2022 and 26.70 days in 2021, suggesting that the company has been able to manage its payables more efficiently.
Comparing the current figure to 2019 and 2020, we see that AAON's number of days of payables has remained relatively stable around 12-13 days. This could imply that the company has established a consistent payment cycle with its suppliers.
Overall, a lower number of days of payables can indicate stronger bargaining power with suppliers or potentially improved cash management practices. However, it's essential to consider the specific industry dynamics and operational requirements when interpreting this ratio in isolation.
Peer comparison
Dec 31, 2023