Dow Inc (DOW)

Number of days of payables

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		6.69	6.85	7.47	7.48	7.01	6.81	6.00	5.73	5.50	5.75	5.39	5.43	5.66	6.14	6.74	6.40	6.16
Number of days of payables	days	54.55	53.30	48.88	48.79	52.08	53.60	60.85	63.67	66.34	63.44	67.70	67.24	64.46	59.46	54.12	57.02	59.28

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.69
= 54.55

To analyze the number of days of payables for Dow Inc, we can calculate the average number of days of payables for the periods provided.

Average Number of Days of Payables = (58.10 + 56.59 + 51.68 + 51.42 + 54.49 + 56.14 + 63.85 + 67.00) / 8
= 54.48 days

The average number of days of payables for Dow Inc over the periods provided is approximately 54.48 days.

Now, let's interpret the average number of days of payables. A lower number of days of payables indicates that the company takes fewer days to pay its suppliers, which can be beneficial in terms of managing cash flow and building good relationships with suppliers. Conversely, a higher number of days of payables may indicate that the company takes longer to pay its suppliers, potentially straining relationships or indicating potential liquidity challenges.

It is important to compare this average with industry benchmarks and historical performance to understand how effectively Dow Inc is managing its payables. Additionally, trend analysis of the number of days of payables over time could provide insights into the company's working capital management and overall financial health.