Estee Lauder Companies Inc (EL)

Number of days of payables

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Payables turnover		10.72	9.08	8.38	8.49	12.33
Number of days of payables	days	34.03	40.22	43.58	43.01	29.60

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.72
= 34.03

The number of days of payables for Estee Lauder Companies Inc has shown a decreasing trend over the past five years. In the most recent fiscal year ending June 30, 2024, the company's number of days of payables was 34.03 days, indicating that on average, it takes approximately 34 days for the company to pay its suppliers and vendors.

Comparing this to the previous years, we observe that the number of days of payables has decreased from 40.22 days in 2023, 43.58 days in 2022, and 43.01 days in 2021. This trend suggests that the company has been able to manage its payables more efficiently, potentially negotiating better payment terms with suppliers or improving its working capital management.

However, it is important to note that in 2020, the number of days of payables was significantly lower at 29.60 days, indicating a quicker payment cycle that year. The increase in the following years may suggest a shift in the company's payment practices or changes in supplier relationships.

Overall, a decreasing trend in the number of days of payables can be seen as a positive indicator of efficient working capital management and liquidity, as the company is taking longer to pay its suppliers, potentially preserving cash flow and improving financial flexibility.