Amphastar P (AMPH)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.74 | 11.53 | 12.20 | 10.72 | 8.48 | |
| Number of days of payables | days | 31.10 | 31.66 | 29.92 | 34.06 | 43.05 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.74
= 31.10
The analysis of Amphastar P's number of days of payables reveals a decreasing trend over the years. In 2020, the company took an average of 43.05 days to pay its trade payables, which decreased to 34.06 days in 2021. This trend continued with a further decrease to 29.92 days by the end of 2022. However, there was a slight increase to 31.66 days in 2023, followed by a slight decrease to 31.10 days in 2024.
The declining number of days of payables suggests that the company may be improving its efficiency in managing its trade payables by paying its suppliers more quickly. This could be seen as a positive sign indicating strong supplier relationships and potentially good cash flow management.
It is important for investors and stakeholders to monitor this metric alongside other financial ratios to gain a comprehensive understanding of Amphastar P's overall financial health and management of working capital.
Peer comparison
Dec 31, 2024