Dow Inc (DOW)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.69 | 7.01 | 5.50 | 5.66 | 6.16 | |
| Number of days of payables | days | 54.55 | 52.08 | 66.34 | 64.46 | 59.28 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.69
= 54.55
To analyze Dow Inc's number of days of payables, we can observe the trend over the past five years. The number of days of payables measures the average number of days it takes for a company to pay off its trade payables. A lower number of days suggests that the company is paying its suppliers more quickly, while a higher number of days indicates that the company is taking longer to settle its payables.
Dow Inc's number of days of payables has fluctuated over the past five years. In 2023, it increased to 58.10 days from 54.49 days in 2022. This indicates a slight lengthening of the payment period to suppliers. However, compared to 2021 and 2020, the number of days of payables in 2023 is still relatively lower. It is essential to consider the reasons behind this change, as it could reflect changes in payment terms, company policies, or supplier relationships.
Overall, the trend in Dow Inc's number of days of payables suggests fluctuations in the company's payment practices over the years. Further analysis of the company's financial and operational strategies would provide deeper insights into the reasons behind these fluctuations and their impact on the company's financial performance.
Peer comparison
Dec 31, 2023