Archrock Inc (AROC)

Number of days of payables

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Payables turnover		10.75	8.58	13.31	11.86	9.41	10.98	8.69	7.16	8.48	5.88	6.53	6.89	12.34	10.73	10.33	14.96	21.53	19.31	17.10	9.38
Number of days of payables	days	33.95	42.54	27.42	30.77	38.78	33.25	42.01	50.99	43.03	62.05	55.89	53.01	29.58	34.03	35.32	24.40	16.95	18.90	21.35	38.91

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.75
= 33.95

The number of days of payables for Archrock Inc has fluctuated over the analyzed period. As of December 31, 2024, the company took approximately 33.95 days to pay its creditors, reflecting a moderate level of payment efficiency.

Looking at the trend, we observe that the number of days of payables decreased from March 2020 to December 2021, indicating an improvement in the company's ability to manage its payables more efficiently. However, there was a notable increase in the number of days of payables from March 2022 to June 2022, peaking at 62.05 days on September 30, 2022, before gradually decreasing again.

It's important to note that a lower number of days of payables generally suggests that the company is paying its suppliers faster, which can be beneficial in terms of maintaining good relationships with suppliers. On the other hand, an excessively low number of days of payables may indicate cash flow issues or an inability to negotiate favorable payment terms.

For a comprehensive analysis, it would be advisable to compare Archrock Inc's number of days of payables with industry benchmarks or its own historical data to gain further insights into the company's payment practices and financial performance.