Adient PLC (ADNT)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.69 | 5.37 | 6.03 | 5.54 | 5.80 | |
| Number of days of payables | days | 64.20 | 67.93 | 60.48 | 65.85 | 62.88 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.69
= 64.20
To analyze Adient plc's number of days of payables, we will calculate the average number of days of payables over the past five years.
Average number of days of payables = (64.20 + 67.93 + 60.48 + 65.85 + 62.88) / 5
Average number of days of payables = 64.668 days
This indicates that, on average, Adient plc takes approximately 64.67 days to pay its suppliers and vendors.
The trend in the number of days of payables shows some fluctuation over the past five years, with a slight increase from 60.48 days in 2021 to 67.93 days in 2022, followed by a decrease to 64.20 days in 2023. This indicates potential changes in the company's payment terms and working capital management.
A lower number of days of payables may suggest that the company is paying its suppliers more quickly, while a higher number of days of payables may indicate that the company is taking longer to settle its payables.
It is important to consider the industry norm and compare Adient plc's number of days of payables to its industry peers to gain a better understanding of its payment practices and efficiency in managing its cash flow.
Peer comparison
Sep 30, 2023