Topbuild Corp (BLD)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.51 | 8.90 | 6.72 | 7.31 | 7.75 | |
| Number of days of payables | days | 38.39 | 41.00 | 54.31 | 49.90 | 47.08 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.51
= 38.39
The number of days of payables for TopBuild Corp has shown a fluctuating trend over the past five years. In 2023, the company took approximately 47.73 days to pay its payables, representing an improvement from the previous year where it took about 50.48 days. Compared to 2021 and 2020, there has been a noticeable decrease in the number of days of payables, indicating a more efficient management of the company's payables. However, it is still higher than the level observed in 2019, when the number of days of payables were around 57.86 days.
Overall, the decreasing trend in the number of days of payables suggests that TopBuild Corp has been managing its payables more effectively in recent years, potentially enhancing its cash flow and working capital management. It will be essential to continue monitoring this ratio to ensure sustainable and efficient payables management in the future.