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.