Broadcom Inc (AVGO)

Number of days of payables

		Feb 4, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Payables turnover		8.56	9.20	11.34	13.62	12.31	11.13	15.27	9.98	9.80	9.77	10.91	12.63	11.67	12.41	9.41	8.33	10.28	11.83	10.04	13.13
Number of days of payables	days	42.65	39.68	32.20	26.80	29.65	32.79	23.90	36.56	37.26	37.37	33.47	28.90	31.27	29.42	38.79	43.79	35.50	30.86	36.36	27.81

February 4, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.56
= 42.65

The analysis of Broadcom Inc's number of days of payables over the given historical periods indicates fluctuations in the company's payment practices to its suppliers. On average, Broadcom took around 33 days to pay its outstanding payables over the examined period.

There is a noticeable variation in the number of days of payables, ranging from a low of 23.90 days to a high of 43.79 days. This suggests that the company's payment cycle has shown some inconsistency, potentially influenced by factors such as changes in cash flow, negotiation terms with suppliers, or overall business conditions.

It is important to note that a shorter number of days of payables indicates that the company is paying its suppliers more quickly, while a longer number of days indicates a slower payment cycle. It is essential for stakeholders to monitor this metric to understand the company's liquidity position, cash management practices, and relationships with suppliers.