Digi International Inc (DGII)

Number of days of payables

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Payables turnover		11.23	5.31	6.29	4.82	6.38
Number of days of payables	days	32.49	68.72	58.07	75.72	57.20

September 30, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.23
= 32.49

To analyze Digi International, Inc.'s number of days of payables, we need to consider the trend over the past five years. The number of days of payables measures the average number of days it takes for the company to pay its suppliers.

Looking at the data, there seems to be a fluctuating trend in the number of days of payables. In 2023, the number of days of payables decreased significantly to 33.17 days from 70.91 days in 2022. This suggests that the company took less time to pay its suppliers in 2023, indicating a potential improvement in its liquidity or efficiency in managing payables.

However, it's important to note that in 2022, there was a substantial increase in the number of days of payables compared to 2021. This increase may indicate a change in the company's payment policies or its ability to negotiate payment terms with its suppliers.

Further analysis of the reasons behind these fluctuations would provide more insight into the company's financial management and relationships with its suppliers. Overall, the downward trend in the number of days of payables in 2023 appears positive, but it would be beneficial to monitor future developments to assess the company's management of its payables effectively.