Colgate-Palmolive Company (CL)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 4.40 | 4.79 | 4.98 | 4.76 | 4.63 | |
| Number of days of payables | days | 82.98 | 76.22 | 73.34 | 76.62 | 78.78 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.40
= 82.98
The number of days of payables for Colgate-Palmolive Company has been decreasing steadily over the past five years. As of December 31, 2020, the company took approximately 78.78 days to pay its payables, which decreased to 76.62 days by the end of 2021. This trend continued with further reductions to 73.34 days by December 31, 2022, though there was a slight increase to 76.22 days by the end of 2023. However, by December 31, 2024, the number of days of payables increased to 82.98 days.
A decreasing number of days of payables typically indicates that the company is paying its suppliers more quickly, which may imply better cash flow management or negotiation power with suppliers. Conversely, an increasing number of days of payables might suggest liquidity concerns or strained supplier relationships. It would be important to further investigate the reasons behind these changes to fully understand the company's financial position.
Peer comparison
Dec 31, 2024