Cognex Corporation (CGNX)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		17.97	27.04	22.18	13.40	31.79
Number of days of payables	days	20.32	13.50	16.45	27.24	11.48

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 17.97
= 20.32

Analyzing Cognex Corporation's number of days of payables, we observe a fluctuating trend over the period under review. The metric increased from 11.48 days as of December 31, 2020, to 27.24 days as of December 31, 2021, indicating a significant extension in the average time taken to pay suppliers. Subsequently, there was a decline to 16.45 days by December 31, 2022, suggesting an improvement in the management of payables.

Over the following years, the number of days of payables continued to show variations, reaching 13.50 days as of December 31, 2023, before increasing to 20.32 days as of December 31, 2024. These changes could be attributed to shifts in the company's payment policies, supplier relationships, or changes in procurement practices.

In conclusion, monitoring the number of days of payables is crucial in assessing Cognex Corporation's efficiency in managing its accounts payable and cash flow. The company may need to carefully balance its payment terms to maintain good relationships with suppliers while optimizing working capital management.