Greif Bros Corporation (GEF)
Number of days of payables
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.55 | 10.33 | 7.29 | 9.45 | 9.79 | |
| Number of days of payables | days | 38.20 | 35.35 | 50.06 | 38.62 | 37.29 |
October 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.55
= 38.20
The number of days of payables, also known as the payables turnover ratio, is a crucial indicator of how efficiently a company manages its accounts payable. It measures the average number of days it takes a company to pay its suppliers.
Analyzing the trend in Greif Inc's number of days of payables over the past five years, we observe the following:
- In 2023, Greif Inc's number of days of payables stood at 44.62 days, showing an increase from the previous year. This suggests that the company took longer to pay its suppliers in 2023 compared to 2022.
- In 2022, the number of days of payables was 40.46 days, indicating an improvement in the efficiency of managing payables compared to the previous year.
- In 2021, the number of days of payables was 57.62 days, reflecting a significant increase compared to 2020. This implies that the company took longer to pay its suppliers in 2021.
- In 2020, the number of days of payables was 45.69 days, indicating a slight increase in the time taken to settle payables compared to 2019.
- In 2019, the number of days of payables was 43.70 days, demonstrating consistency in the management of payables compared to the previous year.
Based on the trend analysis, Greif Inc's number of days of payables has shown some fluctuations over the past five years, with 2021 standing out as a year with a significant increase in the time taken to settle payables.
Overall, the company's management should closely monitor and analyze its payables turnover ratio to ensure effective management of payables and to maintain healthy relationships with its suppliers.