Arch Resources Inc (ARCH)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.87 | 12.52 | 13.80 | 15.94 | 16.11 | |
| Number of days of payables | days | 28.35 | 29.16 | 26.44 | 22.90 | 22.66 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.87
= 28.35
The number of days of payables for Arch Resources Inc has shown a gradual increase over the past five years, from 22.66 days at the end of 2019 to 28.35 days at the end of 2023. This indicates that the company is taking longer to pay its trade payables over time.
The increase in the number of days of payables may suggest that Arch Resources Inc is taking advantage of extending payment terms with its suppliers, potentially improving its liquidity position by holding onto cash for a longer period. However, a significant increase in the number of days of payables may also signal strained relationships with suppliers or potential cash flow issues.
It is important for investors and stakeholders to monitor this trend closely to understand the reasons behind the changes in the number of days of payables and assess the potential impact on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023