Fortune Brands Innovations Inc. (FBIN)
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 | 7.06 | 6.39 | 6.73 | 7.14 | 6.62 | 4.24 | 3.83 | 3.95 | 5.06 | 4.31 | 4.99 | 6.09 | 6.33 | 7.01 | 7.92 | 8.80 | 8.07 | 8.46 | 7.65 | 8.10 | |
| Number of days of payables | days | 51.69 | 57.14 | 54.22 | 51.10 | 55.15 | 86.06 | 95.36 | 92.34 | 72.09 | 84.70 | 73.09 | 59.91 | 57.69 | 52.09 | 46.06 | 41.47 | 45.23 | 43.15 | 47.73 | 45.07 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.06
= 51.69
The number of days of payables for Fortune Brands Innovations Inc. fluctuated over the past years. In the latest reporting period (December 31, 2023), the company took an average of 51.69 days to pay its trade payables. This suggests that the company, on average, is taking just over 51 days to settle its outstanding supplier invoices.
Analyzing the trend further, we observe that the number of days of payables has shown a somewhat inconsistent pattern. There was a notable increase in the number of days of payables in the second quarter of 2022, where it reached 95.36 days, indicating a prolonged payment cycle during that period. Subsequently, there was a significant decline, with the number of days of payables dropping to 41.47 days in the first quarter of 2020.
Overall, monitoring the number of days of payables can provide insights into the efficiency of the company's working capital management. A longer payment cycle can sometimes indicate a stretched cash position or potential liquidity issues. Conversely, a shorter payment cycle could be a sign of strong cash flow management or negotiating favorable payment terms with suppliers.
It is crucial for stakeholders, including investors and creditors, to consider the trend in the number of days of payables alongside other financial metrics to make informed decisions about the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023