Caterpillar Inc (CAT)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.41 | 4.76 | 4.36 | 4.75 | 6.15 | |
| Number of days of payables | days | 67.47 | 76.70 | 83.81 | 76.91 | 59.36 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.41
= 67.47
The number of days of payables for Caterpillar Inc. has shown fluctuations over the past five years. In 2023, the number of days of payables was 67.47 days, indicating that, on average, Caterpillar takes approximately 67 days to pay its suppliers. This represents an improvement from 2022 when the number of days of payables was 76.70 days.
Comparing to the previous years, the number of days of payables was 83.81 days in 2021, 76.91 days in 2020, and 59.36 days in 2019. This trend suggests that Caterpillar has been managing its payables more effectively in recent years, taking longer to pay its suppliers in 2021 but shortening the payment period in 2023.
Overall, a lower number of days of payables indicates that the company is taking longer to pay its suppliers, which can be a sign of more efficient working capital management. It is important to monitor this metric over time to understand Caterpillar's payment practices and their impact on the company's financial health and supplier relationships.
Peer comparison
Dec 31, 2023