Commercial Metals Company (CMC)
Number of days of payables
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 15.01 | 16.21 | 15.59 | 20.25 | 18.49 | 19.64 | 17.81 | 14.99 | 16.80 | 15.43 | 13.63 | 16.62 | 16.90 | 20.26 | 19.13 | 22.45 | 19.63 | 22.62 | 19.07 | 19.03 | |
| Number of days of payables | days | 24.32 | 22.52 | 23.41 | 18.02 | 19.74 | 18.58 | 20.49 | 24.35 | 21.72 | 23.65 | 26.79 | 21.96 | 21.60 | 18.02 | 19.08 | 16.26 | 18.60 | 16.13 | 19.14 | 19.18 |
February 29, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 15.01
= 24.32
The number of days of payables for Commercial Metals Company has shown some fluctuation over the past few periods, ranging from as low as 16.13 days to as high as 26.79 days.
In general, a lower number of days of payables indicates that the company is taking longer to pay its suppliers, which could potentially strain relationships with vendors. On the other hand, a higher number of days of payables suggests that the company is taking longer to settle its liabilities, potentially indicating a more conservative approach to managing cash flow.
It is important for management to closely monitor the number of days of payables and ensure that it remains within a reasonable range relative to industry norms and the company's historical performance. Analyzing this ratio in conjunction with other liquidity and working capital metrics can provide a more comprehensive view of Commercial Metals Company's financial health and efficiency in managing its payables.
Peer comparison
Feb 29, 2024