Choice Hotels International Inc (CHH)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 2.43 | 2.03 | 2.35 | 2.42 | 2.70 | |
| Number of days of payables | days | 150.28 | 179.55 | 155.02 | 150.71 | 135.00 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.43
= 150.28
Choice Hotels International Inc's number of days of payables has shown variability over the past five years. In 2023, the company had 150.28 days of payables, which decreased from 179.55 days in 2022. This decrease indicates that Choice Hotels International Inc took fewer days to pay its suppliers relative to the previous year. However, compared to 2021 (155.02 days) and 2020 (150.71 days), the number of days of payables in 2023 was lower, suggesting that the company managed its payables more efficiently.
The number of days of payables in 2023 was also higher than in 2019 (135.00 days), indicating that Choice Hotels International Inc took longer to pay its creditors compared to four years ago. This trend could be a result of changes in the company's payment terms, supplier relationships, or cash flow management strategies.
Overall, monitoring the number of days of payables can provide insights into the company's working capital management and efficiency in paying its obligations. The decreasing trend from 2022 to 2023 suggests an improvement in managing payables, while the year-over-year fluctuations indicate the company's changing approach to managing its payment obligations.
Peer comparison
Dec 31, 2023