American Electric Power Company Inc (AEP)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.71 | 0.58 | 0.68 | 0.76 | 0.58 | |
| Number of days of payables | days | 517.16 | 626.18 | 535.40 | 480.96 | 627.11 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.71
= 517.16
The number of days of payables for American Electric Power Company Inc. has shown a declining trend over the past five years, indicating that the company is taking fewer days to pay its suppliers and vendors.
In 2019, the company took 149.10 days, on average, to pay its payables, which decreased to 142.81 days by 2020. This trend continued with further reductions to 137.19 days in 2021, 134.37 days in 2022, and finally to 112.77 days in 2023.
The decreasing number of days of payables suggests that American Electric Power Company Inc. may be managing its working capital more efficiently by paying its suppliers more quickly, potentially improving relationships and negotiating better terms with suppliers. However, a significant decline in the number of days of payables could also indicate a change in the company's payment policies or vendor relationships, which may require further investigation to understand the underlying reasons.
Peer comparison
Dec 31, 2023