Datadog Inc (DDOG)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		4.79	4.67	14.77	9.27	6.10
Number of days of payables	days	76.27	78.10	24.71	39.38	59.83

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.79
= 76.27

The number of days of payables for Datadog Inc has demonstrated notable fluctuations over the observed period from December 31, 2020, to December 31, 2024. At the end of 2020, the company’s payables period was approximately 59.83 days, indicating that on average, the company paid its suppliers nearly two months after invoicing. This period decreased significantly by the end of 2021 to around 39.38 days, suggesting an improvement in the company's payable management or a strategic shift toward quicker settlement of liabilities.

The downward trend continued into 2022, with the payables period decreasing further to approximately 24.71 days. This reduction reflects a possible emphasis on earlier payments, potentially enhancing supplier relationships or taking advantage of early payment discounts. However, from the end of 2022 onward, a shift is observed where the payables period extended markedly, rising to 78.10 days in 2023. This substantial increase indicates that the company delayed payments to suppliers, possibly reflecting changes in cash flow management, credit terms negotiated with suppliers, or strategic adjustments in working capital management.

In 2024, the number of days of payables slightly decreased to 76.27 days, maintaining a relatively high level compared to previous years. This stabilization at a longer payables period may suggest that the company has adopted a strategy of extending payment terms to optimize liquidity or manage cash flows effectively, though it might also imply a cautious approach to payables relative to earlier years.

Overall, the trend reveals a significant reduction in the payables period from 2020 to 2022, followed by a substantial extension in 2023 and stabilization in 2024, indicating strategic or operational shifts in Datadog Inc’s Accounts Payable management over the observed period.