Chuy's Holdings Inc (CHUY)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 54.01 | 34.91 | 61.31 | 77.50 | 72.28 | |
| Number of days of payables | days | 6.76 | 10.46 | 5.95 | 4.71 | 5.05 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 54.01
= 6.76
Based on the data provided, the number of days of payables for Chuy`s Holdings Inc has exhibited fluctuations over the past five years. The number of days of payables was on an increasing trend from 2019 to 2022, reaching a peak of 25.60 days at the end of December 2022. However, in 2023, there was a notable decrease in the number of days of payables to 17.52 days.
A lower number of days of payables indicates that the company takes less time to pay off its suppliers, which can be beneficial for cash flow management. It suggests that the company is efficient in managing its accounts payable and has a strong position in negotiating favorable payment terms with its suppliers. Conversely, a higher number of days of payables may signal potential liquidity issues or strained relationships with suppliers.
Overall, the decreasing trend in the number of days of payables in 2023 compared to the previous year is a positive indicator of improved efficiency in managing payables for Chuy`s Holdings Inc. It is important for the company to continue monitoring this ratio to ensure optimal cash flow and maintain positive supplier relationships.
Peer comparison
Dec 31, 2023