American Electric Power Company Inc (AEP)

Number of days of payables

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		0.37	0.40	0.38	0.44	0.38	0.42	0.42	0.50	0.41	0.52	0.49	0.45	0.45	0.49	0.50	0.50	0.37	0.57	0.57	1.55
Number of days of payables	days	975.11	921.52	967.31	824.67	948.84	860.71	873.35	725.93	900.06	698.64	738.64	803.00	816.81	746.09	732.79	731.10	991.04	639.19	639.37	235.68

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.37
= 975.11

Based on the data provided, the number of days of payables for American Electric Power Company Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the number of days of payables decreased to 112.77 days compared to the previous quarter, indicating that the company took fewer days to pay its outstanding obligations to suppliers.

However, looking at the trend over the past two years, the number of days of payables has generally been relatively stable with some variations. In Q2 2022, the company had the highest number of days of payables at 137.23 days, suggesting a longer payment period to suppliers. On the other hand, in Q4 2022, the number of days of payables decreased significantly to 134.37 days before fluctuating in subsequent quarters.

Overall, it is important to monitor the number of days of payables as it reflects the efficiency of the company in managing its accounts payable and cash flow. Fluctuations in this ratio can indicate changes in the company's payment practices and relations with suppliers, which can have implications for its liquidity and financial health.