Now Inc (DNOW)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.27 | 5.44 | 5.50 | 9.64 | 9.90 | |
| Number of days of payables | days | 58.21 | 67.13 | 66.39 | 37.86 | 36.86 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.27
= 58.21
The number of days of payables for NOW Inc has shown variability over the past five years. The trend indicates that the company has been taking longer to pay its suppliers in recent years. In particular, the number increased from 39.36 days in 2019 to 58.86 days in 2023. This suggests that NOW Inc is taking almost 59 days on average to settle its payables, which is higher compared to previous years. This could be an indication of changes in the company's payment terms or liquidity position. Further analysis is recommended to understand the factors contributing to this trend and its implications for the company's financial health.
Peer comparison
Dec 31, 2023