Align Technology Inc (ALGN)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.21 | 8.61 | 6.21 | 4.99 | 7.60 | |
| Number of days of payables | days | 35.74 | 42.40 | 58.81 | 73.20 | 48.04 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.21
= 35.74
The number of days of payables for Align Technology, Inc. has shown a decreasing trend over the last five years. As of December 31, 2023, the company had an average payable period of 35.74 days, which indicates that, on average, Align Technology takes approximately 35.74 days to pay its suppliers and vendors.
Comparing this to the previous years, we can observe a notable improvement in the management of payables. In 2022, the company took 42.40 days on average to settle its payables, showing a decrease from the prior year's figure of 58.81 days in 2021. The trend continues to show progress as the number of days of payables has decreased steadily since 2020 when it was at 73.20 days.
A lower number of days of payables can signal efficient cash flow management, better negotiation with suppliers for favorable credit terms, or potential improvements in the company's supply chain processes. It may indicate that Align Technology is using its working capital more effectively, resulting in potential cost savings or increased liquidity.
However, it is essential to note that a significant decrease in the number of days of payables should be assessed in conjunction with other financial metrics to provide a comprehensive analysis of the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023