FMC Corporation (FMC)

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		5.93	5.62	3.90	3.46	3.12	3.38	2.78	2.81	2.53	2.47	2.30	2.41	2.74	3.41	3.02	3.06	2.81	3.74	3.10	2.77
Number of days of payables	days	61.55	64.89	93.50	105.55	117.12	107.99	131.30	130.02	144.17	147.51	158.76	151.72	133.41	107.10	120.82	119.20	130.05	97.67	117.58	131.91

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.93
= 61.55

Based on the data provided for FMC Corp.'s number of days of payables over the past eight quarters, there seems to be a fluctuating trend in the company's payables management. The number of days of payables peaked at 131.51 days in Q4 2022 and gradually decreased to 82.79 days in Q4 2023, which indicates a significant improvement in the company's ability to manage its payables more efficiently.

The average number of days of payables over the eight quarters is approximately 115.94 days, suggesting that FMC Corp. typically takes around 116 days to pay its outstanding invoices. However, it is important to note that the company's payables management has shown some variability, as evidenced by the range of values from 82.79 days to 131.51 days.

A lower number of days of payables generally indicates that the company is paying its suppliers more quickly, which could be advantageous in terms of maintaining good relationships with vendors. On the other hand, an excessively low number of days of payables may also signal potential liquidity issues or inefficiencies in managing working capital.

Overall, the recent downward trend in FMC Corp.'s number of days of payables suggests an improvement in the company's working capital management, potentially leading to better cash flow and financial stability. However, further analysis and comparison with industry benchmarks would be beneficial to provide a more comprehensive evaluation of the company's payables performance.