Forward Air Corporation (FWRD)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		10.78	11.30	11.18	24.53	42.79
Number of days of payables	days	33.84	32.31	32.64	14.88	8.53

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.78
= 33.84

Based on the data provided, Forward Air Corporation's number of days of payables has shown an increasing trend over the past five years. The company took approximately 33.84 days to pay its suppliers in 2023, compared to 32.31 days in 2022 and 32.64 days in 2021. This suggests that the company is taking longer to settle its payables, which could indicate a potential change in the company's payment practices or liquidity position.

It is noteworthy that the number of days of payables has more than doubled from 2019 to 2020, increasing from 8.53 days to 14.88 days. This significant jump may indicate a shift in the company's working capital management strategy or a response to external economic factors.

Overall, an upward trend in the number of days of payables could point towards a potential strain on the company's cash flow position or a deliberate effort to extend payment terms with suppliers. Further analysis of the company's financial performance and working capital management practices would be required to fully understand the implications of these changes.