Commercial Metals Company (CMC)

The number of days of payables is a financial ratio that measures the average number of days it takes for a company to pay its suppliers and vendors. A lower number of days of payables indicates that the company is paying its suppliers more quickly, while a higher number suggests that the company is taking longer to settle its payables.

Looking at Commercial Metals Co.'s number of days of payables from August 31, 2019, to August 31, 2023, we can see the following trend:

- August 31, 2023: 19.03 days
- August 31, 2022: 22.14 days
- August 31, 2021: 29.25 days
- August 31, 2020: 21.43 days
- August 31, 2019: 20.92 days

The trend in Commercial Metals Co.'s number of days of payables indicates a fluctuation over the past five years. The ratio decreased from 2019 to 2020, indicating that the company was paying its suppliers more quickly. However, there was an increase in the number of days of payables in 2021, suggesting that the company may have been taking longer to settle its payables that year. The most recent data for 2023 shows a decrease in the number of days of payables, indicating that the company may have improved its efficiency in paying its suppliers.

Overall, a lower number of days of payables is generally favorable, as it demonstrates efficient management of payables and cash flow. However, it's also important to consider the industry benchmarks and the company's specific circumstances when interpreting this ratio.

In conclusion, Commercial Metals Co.'s number of days of payables has shown fluctuation over the past five years, and it's essential for the company to monitor and manage this ratio effectively to ensure efficient management of its payables and maintain positive relationships with its suppliers.

Peer comparison

Aug 31, 2023