The AES Corporation (AES)
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 | 4.62 | 6.21 | 6.57 | 6.90 | 5.82 | 5.80 | 5.53 | 6.82 | 7.31 | 7.76 | 7.79 | 8.54 | 6.03 | 6.51 | 6.06 | 7.12 | 5.98 | 6.42 | 6.63 | 6.65 | |
| Number of days of payables | days | 78.97 | 58.80 | 55.53 | 52.86 | 62.71 | 62.98 | 65.96 | 53.54 | 49.92 | 47.06 | 46.85 | 42.73 | 60.56 | 56.04 | 60.19 | 51.29 | 61.04 | 56.83 | 55.02 | 54.86 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.62
= 78.97
To analyze AES Corp.'s number of days of payables, we observe a moderate fluctuation in the payment period over the last eight quarters. In Q4 2023, the company took around 79 days to settle its payables, a significant increase compared to the previous quarter's 59 days. This indicates that AES Corp. may be taking longer to pay its bills, which could potentially strain its cash flow.
Looking further back, Q1 2023 and Q2 2023 showed a gradual decrease in the number of days of payables, suggesting that the company was managing its payments more efficiently during that period. Q1 2022 had the lowest number of days of payables at around 54 days, indicating a more favorable cash management approach.
Overall, while there have been fluctuations in the number of days of payables for AES Corp., it is essential for investors and stakeholders to monitor this metric closely to ensure that the company is effectively managing its cash flow and relationships with its suppliers.