Applied Materials Inc (AMAT)

Number of days of payables

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Payables turnover		11.29	10.85	11.23	10.99	9.84	8.82	8.84	9.35	9.41	8.97	9.29	8.75	9.67	8.80	8.11	8.13	8.09	8.58	9.22	9.41
Number of days of payables	days	32.32	33.65	32.50	33.22	37.11	41.40	41.27	39.05	38.79	40.69	39.31	41.70	37.75	41.47	44.98	44.88	45.12	42.53	39.60	38.79

January 28, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.29
= 32.32

To analyze Applied Materials Inc.'s number of days of payables, we can observe a decreasing trend from Q4 2022 to Q1 2024. The number of days of payables has reduced from 46.19 days in Q3 2022 to 36.81 days in Q1 2024. This indicates that the company is taking fewer days to pay its suppliers/vendors, which can be a positive sign of efficient cash management.

The decreasing trend suggests that Applied Materials Inc. may be managing its payables more effectively, possibly negotiating better terms with suppliers or improving internal processes related to payments. By reducing the number of days of payables, the company may be able to optimize its working capital and strengthen its overall financial position.

It is important to note that a lower number of days of payables can also indicate potential liquidity concerns or strained vendor relationships if not managed carefully. Therefore, ongoing monitoring of this ratio and its trend is crucial to assess the company's financial health and operational efficiency.