Equifax Inc (EFX)
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 | 22.11 | 22.40 | 28.33 | 28.22 | 16.21 | 23.40 | 20.97 | 20.90 | 17.89 | 19.40 | 21.30 | 20.44 | 21.69 | 21.07 | 21.76 | 18.73 | 23.30 | 19.52 | 14.55 | 10.84 | |
Number of days of payables | days | 16.51 | 16.29 | 12.89 | 12.93 | 22.51 | 15.60 | 17.40 | 17.46 | 20.40 | 18.82 | 17.14 | 17.86 | 16.83 | 17.32 | 16.77 | 19.49 | 15.66 | 18.70 | 25.09 | 33.67 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 22.11
= 16.51
To analyze Equifax, Inc.'s number of days of payables, we look at the trend over the past eight quarters. The number of days of payables measures how long, on average, the company takes to pay its suppliers. A lower number of days indicates that the company is paying its suppliers more quickly, while a higher number of days suggests that it is taking longer to settle its payables.
From the data provided, we can see that Equifax's number of days of payables has fluctuated over the quarters. In Q4 2023, the company took approximately 30.89 days to pay its suppliers, which is slightly higher compared to the previous quarter at 30.36 days. This indicates that Equifax slightly increased the time it takes to settle its payables.
Looking back further, in Q2 2023 and Q1 2023, Equifax managed to reduce its number of days of payables to 24.06 days and 24.24 days, respectively. These lower numbers suggest that the company was more efficient in paying its suppliers during those quarters.
Comparing the most recent quarters to the same quarters in the previous year, we observe improvements in the company's payables management. For instance, in Q4 2023, Equifax's number of days of payables decreased from 42.05 days in Q4 2022. This reduction indicates that the company has optimized its payables process and is paying its suppliers more promptly.
Overall, Equifax's fluctuations in the number of days of payables demonstrate varying levels of efficiency in managing its payables. It is essential for the company to strike a balance in managing payables effectively to maintain good relationships with suppliers while optimizing cash flow and working capital.