Embecta Corp (EMBC)
Number of days of payables
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Payables turnover | 5.74 | 6.36 | 8.45 | 7.50 | 5.72 | 2.85 | 2.70 | 3.00 | 2.28 | ||||
Number of days of payables | days | 63.62 | 57.42 | 43.22 | 48.66 | 63.80 | 128.18 | 134.97 | 121.59 | 159.97 |
September 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.74
= 63.62
The number of days of payables for Embecta Corp has been fluctuating over the past few quarters. As of September 30, 2024, the company takes approximately 63.62 days to pay its suppliers, which is an increase from the previous quarter. This suggests that the company is taking slightly longer to settle its payables.
Looking at historical data, there was a significant spike in the number of days of payables in the first half of 2023, reaching as high as 134.97 days in March 2023. This indicates that the company was taking much longer to pay its suppliers during that period, which may have had implications on its cash flow and relationships with vendors.
Subsequently, there was a noticeable improvement in the payment period, with the number of days of payables decreasing consistently until the end of 2023. However, the recent uptick in the number of days of payables in the current quarter raises some concerns about the company's working capital management and liquidity position.
Overall, it is essential for Embecta Corp to closely monitor its payables turnover and strive to maintain a balanced approach to managing its supplier payments to ensure healthy cash flow and sustainable vendor relationships.
Peer comparison
Sep 30, 2024