American Electric Power Co Inc (AEP)

Number of days of payables

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Payables turnover 1.80 0.38 0.40 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
Number of days of payables days 202.56 967.64 909.37 975.11 921.52 967.31 824.67 948.84 860.71 873.35 725.93 900.06 698.64 738.64 803.00 816.81 746.09 732.79 731.10 991.04

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.80
= 202.56

The number of days of payables for American Electric Power Co Inc has shown fluctuations over the period from December 31, 2019, to December 31, 2024. It started at 991.04 days at the end of 2019, indicating that the company took about 991 days on average to pay its outstanding bills. Over the next few quarters, there was a decreasing trend, reaching a low of 202.56 days on December 31, 2024, suggesting an improvement in the efficiency of paying off its suppliers.

However, it's important to note that a significant drop from the relatively high numbers at the beginning of the period to the extremely low figure at the end of the period may raise questions about the financial health of the company. Such variations could indicate changes in payment policies, cash flow issues, or potential liquidity concerns.

Overall, a thorough analysis of the reasons behind these fluctuations in the number of days of payables would be necessary to understand the financial management practices and the implications on the company's operations and relationships with suppliers.