Carpenter Technology Corporation (CRS)

Number of days of payables

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Payables turnover		9.96	9.12	7.95	12.61	17.90
Number of days of payables	days	36.66	40.04	45.92	28.94	20.39

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.96
= 36.66

The trend in Carpenter Technology Corporation's number of days of payables over the past five years shows varying levels of efficiency in managing its trade credit terms with suppliers.

In 2024, the company took approximately 36.66 days, on average, to pay its suppliers, which reflects a slight improvement compared to the previous year. This suggests that the company is able to maintain a relatively quick payment cycle, which can be beneficial for cash flow management.

Looking back over the five-year period, there has been a general trend of decreasing days of payables, indicating that Carpenter Technology has been increasingly efficient in managing its payables. The significant drop from 2020 to 2021, from 20.39 days to 28.94 days, suggests a potential change in the company's payment policies or vendor relations during that period.

Overall, a lower number of days of payables indicates that the company is paying its suppliers more quickly, which may be seen as a positive sign of liquidity and strong supplier relationships. However, it's essential to consider the industry norms and the company's specific operational requirements when evaluating this metric in isolation.