Freshpet Inc (FRPT)

Number of days of payables

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Payables turnover		14.21	14.95	16.34	16.54	11.61	14.42	12.11	14.44	16.58	7.41	9.79	8.15	3.81	6.18	18.92	5.72	6.61	11.30	15.58	16.99
Number of days of payables	days	25.68	24.41	22.33	22.07	31.43	25.31	30.15	25.27	22.02	49.27	37.29	44.80	95.89	59.06	19.29	63.77	55.20	32.31	23.43	21.49

March 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.21
= 25.68

The number of days of payables for Freshpet Inc. exhibits notable fluctuations over the analyzed period. At the beginning of the period, the days payable stood at approximately 21.49 days as of June 30, 2020, and experienced a gradual increase, reaching a peak of approximately 95.89 days on March 31, 2022. This significant rise suggests a lengthening of the company's payment cycle during this period, potentially indicative of extended credit terms or changing vendor relationships.

Following this peak, a downward trend commences, with days payable decreasing to approximately 44.80 days by June 30, 2022, and further reducing to around 37.29 days by September 2022. This reduction might reflect a strategic effort to shorten payment durations, possibly to improve liquidity or renegotiate terms with suppliers. The days payable experience some fluctuations thereafter but remained relatively stable around the 25-30 day range through subsequent periods, with values such as 25.27 days on June 30, 2023, and 30.15 days on September 30, 2023.

In the latest periods, the days payable stabilized somewhat, with figures such as 25.31 days at December 31, 2023, and slightly increasing to 31.43 days as of March 31, 2024. The subsequent quarterly data shows minimal variation, with values around 22 to 25 days, indicating a relatively consistent accounts payable policy over this timeframe.

Overall, the trends suggest that Freshpet Inc. experienced significant variability in its days of payables over the analyzed period, initially lengthening its payment cycle markedly, then subsequently reducing and stabilizing this metric. The current levels imply a moderate approach to managing payables, balancing supplier relationships with liquidity considerations.