Aecom Technology Corporation (ACM)
Number of days of payables
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.87 | 6.13 | 6.07 | 6.00 | 5.31 | |
| Number of days of payables | days | 62.21 | 59.53 | 60.16 | 60.84 | 68.69 |
September 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.87
= 62.21
Aecom Technology Corporation's number of days of payables has exhibited a relatively stable trend over the five-year period from September 30, 2020, to September 30, 2024, ranging from a low of 59.53 days in 2023 to a high of 68.69 days in 2020. The average number of days of payables during this period was approximately 62.09 days.
The number of days of payables indicates the average number of days it takes for a company to pay its trade payables. Aecom's consistent performance in this metric suggests effective management of its accounts payable. Lower numbers of days of payables may indicate efficient cash management and strong negotiation power with suppliers.
However, a slight increase in the number of days of payables can also signal that Aecom may be taking longer to pay its suppliers, potentially straining its vendor relationships. It is essential for Aecom to strike a balance between extending payment terms to maximize its cash flow and maintaining good relationships with its suppliers to ensure a reliable supply chain.
Overall, while Aecom's number of days of payables has been relatively stable over the years, continuous monitoring and analysis of this metric are crucial to ensure efficient working capital management and healthy supplier relationships.
Peer comparison
Sep 30, 2024