Allegion PLC (ALLE)
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 | 11.46 | 11.96 | 11.17 | 10.28 | 9.61 | 9.70 | 8.66 | 9.24 | 9.06 | 8.41 | 7.63 | 7.96 | 7.96 | 12.06 | 11.86 | 12.14 | 10.46 | 10.94 | 11.03 | 11.37 | |
| Number of days of payables | days | 31.85 | 30.53 | 32.69 | 35.50 | 37.97 | 37.64 | 42.15 | 39.51 | 40.30 | 43.41 | 47.85 | 45.84 | 45.84 | 30.26 | 30.78 | 30.07 | 34.89 | 33.35 | 33.09 | 32.09 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.46
= 31.85
Allegion plc's number of days of payables has shown a decreasing trend over the past two years, with Q4 2022 having the highest value of 52.55 days and Q3 2022 having the second highest value of 52.24 days. However, starting from Q1 2023, the number of days of payables has been consistently decreasing. In Q4 2023, the number of days of payables was at its lowest at 45.72 days, indicating that Allegion is taking fewer days to pay its suppliers compared to the previous quarters.
A lower number of days of payables suggests that Allegion is managing its payables more efficiently, possibly negotiating better payment terms with suppliers or improving its cash flow management. This can be beneficial for the company as it may indicate improved working capital management and potentially better relationships with suppliers. However, it is important to monitor this ratio to ensure that payables are being managed effectively while maintaining positive supplier relationships.