Digi International Inc (DGII)

Number of days of payables

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Payables turnover		7.33	11.23	5.31	6.29	4.82
Number of days of payables	days	49.80	32.49	68.72	58.07	75.72

September 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.33
= 49.80

The number of days of payables for Digi International Inc has shown a fluctuating trend over the past five years. As of September 30, 2024, the company took approximately 49.80 days to pay its suppliers, which is a significant increase compared to the previous year where it took 32.49 days. This indicates that the average payment period has lengthened, which may suggest that the company is taking longer to settle its outstanding obligations.

Comparing the latest data to the figures from the prior years, we observe that in 2022 and 2020, Digi International Inc took 68.72 days and 75.72 days, respectively, to pay its payables. Therefore, the current number of days of payables is lower than the levels seen in those years, which could imply an improvement in the company's payables management efficiency.

However, it is important to note that the number of days of payables is just one aspect of the company's overall financial health and should be considered alongside other financial ratios and metrics for a comprehensive analysis. Further investigation into the company's payment policies, cash flow situation, and supplier relationships would provide a more complete understanding of its financial performance.