Calavo Growers Inc (CVGW)
Number of days of payables
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 62.90 | 113.89 | 108.51 | 113.69 | 64.72 | |
| Number of days of payables | days | 5.80 | 3.20 | 3.36 | 3.21 | 5.64 |
October 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 62.90
= 5.80
The number of days of payables for Calavo Growers, Inc has shown some variability over the past five years. In 2023, the number of days of payables increased to 6.29 days from 3.41 days in 2022, indicating that the company took longer to pay its suppliers and vendors. This increase could be a result of changes in the company's payment terms with suppliers, cash flow constraints, or shifts in purchasing patterns.
Comparing the 2023 data to 2021 and 2020, it is evident that the number of days of payables has fluctuated within a relatively narrow range of 3.53 to 3.58 days. This indicates the company's stable payment practices during those years.
However, the figure in 2023 is higher than in 2019, when the number of days of payables stood at 5.96 days. The decrease from 2019 to 2022 reflects an improvement in the company's ability to manage its payables, potentially signaling enhanced efficiency in managing supplier relationships and cash flow.
Overall, an increase in the number of days of payables may suggest a change in the company's financial management or supplier relationships, highlighting the importance of further analysis to understand the underlying factors driving these changes.