American Water Works (AWK)

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 0.18 0.20 0.24 0.23 0.18 0.18 0.17 0.21 0.16 0.21 2.45 5.19 5.63 7.60 8.99 9.50 6.54 7.62 7.17 7.84
Number of days of payables days 2,036.94 1,783.68 1,509.13 1,621.44 2,063.65 2,080.50 2,190.00 1,718.17 2,261.22 1,708.51 149.04 70.35 64.78 48.03 40.59 38.42 55.77 47.88 50.94 46.54

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.18
= 2,036.94

The number of days of payables for American Water Works has shown fluctuations over the years. It was relatively stable around 40-50 days from March 2020 to December 2021. However, there was a significant increase in the number of days of payables from March 2022 onwards, reaching exceptionally high levels. This indicates that the company is taking longer to pay its suppliers, which may have implications for its working capital management and relationships with vendors. The sudden and drastic increase in the number of days of payables from June 2022 to December 2024 raises concerns about the company's liquidity and ability to meet its short-term obligations. Further analysis and monitoring of this trend would be necessary to assess the impact on American Water Works' financial health and operational efficiency.