Eaton Corporation PLC (ETN)
Number of days of payables
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | 7.15 | 8.18 | 7.88 | 6.78 | 6.31 | 6.41 | 6.38 | |
| Number of days of payables | days | 83.20 | 81.51 | 80.70 | 80.17 | 80.87 | 79.14 | 82.45 | 78.22 | 76.80 | 71.40 | 69.97 | 64.51 | 58.45 | 51.04 | 44.64 | 46.32 | 53.82 | 57.84 | 56.95 | 57.20 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.39
= 83.20
The number of days of payables for Eaton Corporation plc has shown fluctuating trends over the past eight quarters. In Q4 2023, the number of days of payables was at 83.20 days, higher than the previous quarter's 81.51 days in Q3 2023. This suggests that the company took longer to pay its suppliers in Q4 2023 compared to the previous quarter.
Comparing year-over-year, the number of days of payables in Q4 2023 (83.20 days) was slightly higher than in Q4 2022 (80.87 days), indicating a possible lengthening in the company's payment cycle over the year.
Overall, a higher number of days of payables may indicate that Eaton Corporation plc is taking longer to settle its outstanding invoices with suppliers. This could potentially signal a conservative approach to managing cash flow or negotiating favorable payment terms with vendors. However, an excessively high number of days of payables may also raise concerns about the company's liquidity and ability to honor its obligations promptly.
Peer comparison
Dec 31, 2023
See also:
Eaton Corporation PLC Average Payables Payment Period (Quarterly Data)