Allegion PLC (ALLE)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.60 | 9.72 | 9.13 | 10.68 | 10.53 | |
| Number of days of payables | days | 31.48 | 37.55 | 39.99 | 34.19 | 34.65 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.60
= 31.48
The number of days of payables for Allegion plc has shown a declining trend over the past five years. In 2019, the company took approximately 50.36 days to pay its suppliers, which increased to 56.89 days in 2021. However, the trend reversed in the following years, with the number of days of payables decreasing to 52.20 days in 2020, 52.55 days in 2022, and further down to 45.72 days in 2023.
This decrease in the number of days of payables indicates that Allegion plc has been managing its payables more efficiently, potentially improving its cash flow position. A lower number of days of payables suggests that the company is taking less time to settle its outstanding bills, which could imply better relationships with suppliers or more effective working capital management.