Danaher Corporation (DHR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.62 | 9.81 | 8.24 | 8.72 | 9.34 | |
| Number of days of payables | days | 34.37 | 37.19 | 44.32 | 41.86 | 39.09 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.62
= 34.37
The number of days of payables for Danaher Corp. has fluctuated over the past five years, ranging from 65.40 days at the end of 2023 to 81.53 days at the end of 2021.
A lower number of days of payables indicates that the company takes less time to pay its suppliers, which can be a positive sign of strong liquidity and efficient cash management. Conversely, a higher number of days of payables may suggest that the company is taking longer to settle its outstanding payables, potentially signaling liquidity challenges or strained vendor relationships.
In this case, the trend shows a slight improvement in payables management from 2021 to 2023, with a decrease in the number of days required to settle payables. It would be important to further assess the reasons behind these fluctuations to determine if they align with the company's overall financial strategy and operational efficiency.
Peer comparison
Dec 31, 2023