Broadcom Inc (AVGO)
Number of days of payables
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.20 | 11.13 | 9.77 | 12.41 | 11.83 | |
| Number of days of payables | days | 39.68 | 32.79 | 37.37 | 29.42 | 30.86 |
October 29, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.20
= 39.68
To analyze the number of days of payables for Broadcom Inc over the past five years, we observe the trend in the metric. The number of days of payables measures how long it takes for the company to pay its suppliers and is calculated as accounts payable divided by cost of goods sold, multiplied by 365 days.
The data indicates that Broadcom has managed to extend its payable period over the years, which suggests the company has been able to negotiate longer payment terms with its suppliers. This trend could reflect a strategic approach to managing cash flow and working capital.
In 2021, the number of days of payables increased to 55.35 days from 44.12 days in 2022. This may indicate that the company was able to further extend its payment terms with suppliers. However, the decrease to 47.63 days in 2023 suggests a potential effort to optimize working capital by reducing the number of days of payables, possibly by accelerating payment to suppliers.
It is worth noting that the number of days of payables in 2021 was higher than in the previous and subsequent years, potentially indicating a temporary shift in the company's payables strategy.
Overall, the trend in the number of days of payables for Broadcom Inc suggests a deliberate approach to managing supplier payments to optimize working capital and cash flow.
Peer comparison
Oct 29, 2023