Applied Materials Inc (AMAT)

Number of days of payables

		Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
Payables turnover		11.01	8.93	9.46	9.77	8.58
Number of days of payables	days	33.15	40.88	38.57	37.37	42.53

October 29, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.01
= 33.15

The number of days of payables for Applied Materials Inc. has fluctuated over the past five years, as indicated by the following data:

- Oct 29, 2023: 38.17 days
- Oct 30, 2022: 46.45 days
- Oct 31, 2021: 44.22 days
- Oct 25, 2020: 43.14 days
- Oct 27, 2019: 42.53 days

The number of days of payables represents the average number of days it takes for a company to pay its suppliers for purchases. A lower number of days of payables generally indicates that the company takes fewer days to pay its suppliers, while a higher number indicates that the company takes more days to settle its payables.

Analyzing the trend, we can see that the number of days of payables has decreased from 46.45 days in 2022 to 38.17 days in 2023. This indicates that in 2023, Applied Materials Inc. took fewer days to pay its suppliers compared to the previous year. This might suggest that the company has become more efficient in managing its accounts payables, or it may also signify better negotiation with suppliers, allowing for more favorable payment terms.

It is important to note that a significant change in the number of days of payables could also be a result of changes in the company's payment policies, supply chain management, or the financial health of its suppliers.

Overall, the decreasing trend in the number of days of payables for Applied Materials Inc. is a positive sign of efficient accounts payable management, which can positively impact the company's liquidity and working capital management. However, it would be beneficial to further investigate the underlying reasons for this trend to fully understand the implications for the company's financial performance.