Balchem Corporation (BCPC)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.18 | 11.55 | 9.88 | 20.21 | 11.60 | |
| Number of days of payables | days | 32.65 | 31.61 | 36.93 | 18.06 | 31.46 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.18
= 32.65
Balchem Corp.'s number of days of payables has fluctuated over the past five years. In 2023, the company took approximately 32.65 days on average to pay its suppliers, which reflects a slight increase compared to the prior year. This metric indicates the number of days it takes for the company to settle its accounts payable.
Comparing to 2021 where the number of days of payables was 36.93 days, it appears that Balchem Corp. has improved its efficiency in managing its payables in 2023. However, the figure is higher than in 2020 when the company only took 18.06 days to pay its suppliers, suggesting a significant elongation in the payment cycle.
It is vital for the company to carefully manage its payables to maintain good relationships with suppliers while ensuring optimal cash flow management. Monitoring this metric over time can provide insights into the company's efficiency in managing its working capital and relationships with its vendors.
Peer comparison
Dec 31, 2023