Forward Air Corporation (FWRD)

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		10.65	12.22	15.04	12.87	11.02	10.60	12.40	9.37	10.94	24.75	23.32	23.84	25.80	18.07	28.45	36.71	42.72	31.21	32.87	32.29
Number of days of payables	days	34.28	29.87	24.26	28.37	33.13	34.44	29.43	38.96	33.36	14.75	15.65	15.31	14.15	20.20	12.83	9.94	8.54	11.70	11.11	11.30

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.65
= 34.28

The number of days of payables for Forward Air Corporation has fluctuated over the recent quarters. In December 2023, the company took approximately 34.28 days on average to pay its suppliers, which was higher compared to September 2023 (29.87 days). The trend shows an improvement in payables management compared to the prior year as the number of days has reduced from 38.96 days in March 2022 to 34.28 days in December 2023.

Analyzing further, the company had the highest number of days of payables in June 2022 (34.44 days) and the lowest in March 2020 (8.54 days). The lowest number of days of payables typically indicates that the company is paying its suppliers more promptly, which can be interpreted as effective working capital management.

Overall, the trend in the number of days of payables for Forward Air Corporation shows variability over time, with some quarters demonstrating more efficient payment practices than others. Further analysis and comparison with industry averages can provide better insights into the company's payables management performance.