Smith AO Corporation (AOS)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.21 | 4.97 | 3.94 | 4.15 | 4.99 | |
| Number of days of payables | days | 70.09 | 73.49 | 92.55 | 87.97 | 73.13 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.21
= 70.09
The number of days of payables for A.O. Smith Corp. has shown a decreasing trend over the past five years, indicating that the company is taking fewer days to pay its suppliers.
In 2023, the number of days of payables decreased to 92.54 days from 94.22 days in 2022. This improvement suggests that the company may have negotiated more favorable payment terms with its suppliers or improved its working capital management efficiency.
Comparing to the data from 2021 and 2020, where the number of days of payables was significantly higher at 122.20 days and 121.56 days respectively, the recent decline in the number of days of payables reflects better control over the company's cash flow and liquidity position.
However, it is worth noting that the number of days of payables in 2019 was slightly lower at 102.65 days compared to 2023, indicating that there may still be room for further optimization in managing payables to potentially enhance the company's financial performance.
Peer comparison
Dec 31, 2023