Eastman Chemical Company (EMN)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 4.96 | 5.25 | 5.27 | 6.18 | 6.02 | |
| Number of days of payables | days | 73.52 | 69.47 | 69.24 | 59.04 | 60.67 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.96
= 73.52
The number of days of payables for Eastman Chemical Co has shown a relatively stable trend over the past five years, ranging from 44.88 days in 2020 to 59.74 days in 2023. This ratio indicates the average number of days a company takes to pay its suppliers.
A higher number of days of payables may suggest that the company is taking longer to settle its payables, potentially indicating favorable terms with suppliers or potential liquidity issues. Conversely, a lower number of days of payables may indicate a more efficient management of payables.
Eastman Chemical Co's number of days of payables has increased over the period, which could be due to the company negotiating better payment terms with suppliers or potentially facing challenges with liquidity. It would be important to examine the company's overall financial health and other liquidity ratios to gain a more comprehensive understanding of its financial performance.
Peer comparison
Dec 31, 2023