American Water Works (AWK)
Number of days of payables
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Payables turnover | 0.18 | 0.18 | 0.16 | 0.16 | 0.23 | |
Number of days of payables | days | 2,036.94 | 2,063.65 | 2,261.22 | 2,257.24 | 1,567.84 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.18
= 2,036.94
American Water Works' number of days of payables has shown an increasing trend over the past five years. As of December 31, 2020, the company had 1,567.84 days of payables, which increased to 2,257.24 days by December 31, 2021, and further to 2,261.22 days by December 31, 2022. The number of days of payables then decreased slightly to 2,063.65 days by December 31, 2023, and further to 2,036.94 days by December 31, 2024.
This increasing trend in the number of days of payables may indicate that American Water Works is taking longer to pay its suppliers, which could potentially strain relationships with vendors. A higher number of days of payables may also suggest liquidity issues within the company, as it may be delaying payments to manage cash flow. Further analysis and comparison with industry benchmarks would be beneficial to assess the impact of this trend on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024