Analog Devices Inc (ADI)

Number of days of payables

		Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019
Payables turnover		15.95	13.80	10.46	14.09	14.61
Number of days of payables	days	22.89	26.44	34.91	25.91	24.98

October 28, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 15.95
= 22.89

Analog Devices Inc.'s number of days of payables measures the number of days it takes for the company to pay its suppliers and creditors. By analyzing this ratio over the past five years, we can gain insights into the company's payment practices and its ability to manage its working capital effectively.

The trend of Analog Devices Inc.'s number of days of payables shows a fluctuating pattern over the last five years. In October 2023, the number of days of payables decreased to 40.64 days from 47.41 days in October 2022. This suggests that the company was able to manage its payables more efficiently, potentially negotiating better payment terms with its suppliers or improving its internal processes.

Comparing this to the previous years, the number of days of payables was 57.94 days in October 2021, indicating that the company took longer to pay its suppliers that year. However, in October 2020 and November 2019, the number of days of payables stood at 43.37 days and 41.58 days, respectively, reflecting a relatively stable period in the company's payment practices.

The decrease in the number of days of payables from 2022 to 2023 suggests that Analog Devices Inc. improved its ability to manage its trade payables efficiently, potentially enhancing its cash flow management and relationship with its suppliers. However, it is important to monitor this trend to ensure that the reduction in days of payables does not negatively impact the company's relationships with its suppliers.