Enerpac Tool Group Corp (EPAC)

The number of days of payables, also known as the payable turnover period, measures the number of days it takes a company to pay its suppliers for goods or services purchased on credit. A lower number of days indicates that the company takes fewer days to pay its suppliers, while a higher number suggests a longer payment period.

In the case of Enerpac Tool Group Corp, the number of days of payables has fluctuated over the past five years. In 2023, the number of days of payables stood at 60.78 days, representing a decrease from the previous year. This indicates that the company took approximately 61 days to pay its suppliers, reflecting a more efficient management of payables compared to the prior year.

Comparing this to the historical trend, there appears to be some variability in the number of days of payables. In 2022, the number was 86.55 days, significantly higher than the most recent year, suggesting a lengthening of the payment period. However, in 2021 and 2020, the number of days of payables stood at 79.21 days and 59.58 days, respectively, indicating fluctuations in the management of payables over these years.

It is worth noting that in 2019, Enerpac Tool Group Corp had a number of days of payables of 77.53 days, indicating a longer payment period compared to 2023 but shorter than 2022 and 2021. This suggests that the company's payment practices have evolved over the years.

Overall, the trend in Enerpac Tool Group Corp's number of days of payables indicates some variability, with the most recent year showing a more efficient management of payables compared to the prior year. It's essential for investors and stakeholders to monitor this ratio to assess the company's ability to manage its working capital effectively and maintain good relationships with its suppliers.

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Aug 31, 2023