Smith AO Corporation (AOS)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.32 | 5.21 | 4.97 | 3.94 | 4.15 | |
| Number of days of payables | days | 68.62 | 70.09 | 73.49 | 92.55 | 87.97 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.32
= 68.62
The number of days of payables for Smith AO Corporation has shown a decreasing trend over the years, indicating an improvement in the company's ability to manage its payables efficiently. As of December 31, 2020, the company took approximately 87.97 days to pay its outstanding obligations, which decreased to 68.62 days by December 31, 2024.
This reduction in the number of days of payables suggests that Smith AO Corporation may be negotiating better payment terms with its suppliers or streamlining its accounts payable processes. A lower number of days of payables can also indicate improved liquidity and financial health for the company, as it is paying its bills more quickly.
Overall, the decreasing trend in the number of days of payables reflects positively on Smith AO Corporation's financial management and operational efficiency in managing its payables effectively.
Peer comparison
Dec 31, 2024