American Water Works (AWK)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.18 | 0.16 | 0.16 | 0.23 | 0.21 | |
| Number of days of payables | days | 2,063.65 | 2,261.22 | 2,257.24 | 1,567.84 | 1,764.17 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.18
= 2,063.65
To analyze American Water Works Co. Inc.'s number of days of payables, we need the payables turnover ratio. This ratio measures how many times a company pays off its average accounts payable balance over a specific period, typically a year. The formula for payables turnover ratio is Cost of Goods Sold / Average Accounts Payable.
The number of days of payables can then be calculated as 365 days / Payables Turnover Ratio. A higher number of days of payables indicates the company takes longer to pay its suppliers, potentially signaling liquidity or financial health issues.
However, without specific data on the Cost of Goods Sold and Accounts Payable for the years in question, a detailed analysis of the number of days of payables for American Water Works Co. Inc. cannot be performed at this time. It is crucial to obtain the necessary financial data to calculate these metrics accurately and draw meaningful conclusions about the company's payment practices.
Peer comparison
Dec 31, 2023