ESCO Technologies Inc (ESE)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.67 | 6.67 | 7.85 | 9.07 | 6.87 | |
| Number of days of payables | days | 54.70 | 54.70 | 46.48 | 40.24 | 53.17 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.67
= 54.70
The number of days of payables for Esco Technologies, Inc. has fluctuated over the past five years. In 2023 and 2022, the number of days of payables remained constant at 54.70 days, indicating that the company takes approximately 54.70 days to pay its suppliers. This stability suggests a consistent approach to managing its accounts payable. However, compared to 2021 and prior years, the number of days of payables has increased, indicating a lengthening of the payment period.
The increase in the number of days of payables from 2019 to 2021 may indicate a change in the company's payment policies or possibly challenges in managing working capital. A longer number of days of payables can positively impact cash flow by allowing the company to hold onto cash for a longer period before settling its payables. However, it may also strain relationships with suppliers if payment terms are extended too far. Further analysis of Esco Technologies, Inc.'s financial position and operational changes would be necessary to fully understand the drivers behind the fluctuations in the number of days of payables.
Peer comparison
Sep 30, 2023