The AES Corporation (AES)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 4.62 | 5.82 | 7.31 | 6.03 | 5.98 | |
| Number of days of payables | days | 78.97 | 62.71 | 49.92 | 60.56 | 61.04 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.62
= 78.97
AES Corp.'s number of days of payables has exhibited fluctuations over the past five years. In 2023, the company took an average of 78.97 days to pay its trade payables, representing an increase from 62.71 days in 2022. This indicates that AES Corp. is taking longer to settle its outstanding obligations to suppliers and vendors compared to the previous year. Moreover, the current level of 78.97 days is significantly higher than the levels observed in 2021 (49.92 days), 2020 (60.56 days), and 2019 (61.04 days).
The increase in the number of days of payables may suggest potential liquidity constraints or changes in the company's payment policies. A longer payment period can provide short-term financial relief but may strain relationships with suppliers if not managed effectively. AES Corp. should monitor this trend closely to ensure that it does not negatively impact its cash flow or supplier relationships in the future.