The Chefs Warehouse Inc (CHEF)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 16.75 | 15.52 | 14.84 | 21.66 | 12.76 | |
| Number of days of payables | days | 21.79 | 23.51 | 24.59 | 16.85 | 28.61 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 16.75
= 21.79
The number of days of payables for The Chefs Warehouse Inc has exhibited fluctuating trends over the past five years. As of December 31, 2023, the company's number of days of payables stood at 21.79 days, reflecting a decrease from the previous year. This metric indicates that, on average, the company takes approximately 21.79 days to pay its suppliers.
Comparing this figure to previous years, we observe that there was a general downward trend from 2020 to 2023, suggesting improved efficiency in managing payables. In 2020, the number of days of payables was at its lowest point at 16.85 days, indicating the company was able to extend its payment period. However, there was an uptick in 2021 and 2022, before the decline in 2023.
The reduction in the number of days of payables may suggest various possible scenarios, such as improved negotiation terms with suppliers, better cash flow management, or changes in purchasing strategies.
Overall, a lower number of days of payables can indicate a more favorable liquidity position for the company as they are taking longer to pay their suppliers. However, it is crucial to assess this metric in conjunction with other financial ratios and considerations to gain a comprehensive understanding of The Chefs Warehouse Inc's financial health and operational efficiency.
Peer comparison
Dec 31, 2023