Aecom Technology Corporation (ACM)

The number of days of payables is an important financial ratio that measures the average number of days it takes a company to pay its suppliers and vendors. A lower number of days of payables indicates that a company is paying its bills more quickly, while a higher number suggests that it takes longer for the company to settle its obligations.

Looking at AECOM's number of days of payables over the past five years, we observe the following trend:

- In Sep 30, 2019, the number of days of payables was 55.71 days.
- In Sep 30, 2020, the number of days of payables increased to 68.52 days.
- In Sep 30, 2021, the number of days of payables slightly decreased to 60.84 days.
- In Sep 30, 2022, the number of days of payables further decreased to 60.16 days.
- In Sep 30, 2023, the number of days of payables decreased once more to 59.53 days.

The decreasing trend from 2020 suggests that AECOM has improved its ability to pay its suppliers more efficiently over the past three years. This may indicate better management of working capital and relationships with suppliers. Furthermore, a lower number of days of payables can also reflect positively on the company's cash flow position as it indicates a shorter period for which funds are tied up in accounts payable.

However, it is essential to note that a significant decrease in the number of days of payables should be examined in conjunction with other financial metrics to understand the overall health of the company's financial management. Additionally, it's important to compare this ratio with industry benchmarks to gain a better understanding of AECOM's performance in managing its payables.

Peer comparison

Sep 30, 2023