FormFactor Inc (FORM)

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		7.98	8.82	8.82	9.04	8.78	7.91	9.56	8.97	10.27	9.30	9.54	8.38	8.84	8.30	11.27	12.34	11.71	8.95	17.27	14.22
Number of days of payables	days	45.71	41.40	41.37	40.36	41.55	46.12	38.16	40.71	35.53	39.24	38.26	43.58	41.27	43.98	32.38	29.59	31.18	40.76	21.13	25.66

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.98
= 45.71

FormFactor Inc's number of days of payables has shown some variability over the past few quarters. The company's average number of days of payables over the 16 quarters from March 2019 to December 2023 is approximately 38.74 days. In general, the trend indicates that the company takes around 38 to 43 days to pay its suppliers.

The highest number of days of payables occurred in September 2022 at 46.12 days, while the lowest was in June 2020 at 29.59 days. The variability in the number of days of payables suggests that FormFactor Inc has been managing its payables effectively, potentially adjusting payment terms based on business needs and cash flow considerations.

Overall, a higher number of days of payables may indicate that the company is taking longer to pay its suppliers, potentially benefiting from better cash flow management or negotiating favorable terms. Conversely, a lower number of days of payables may suggest a more aggressive payment strategy or tighter liquidity constraints. It would be important to consider industry norms and specific company circumstances when evaluating FormFactor Inc's payables management.