Generac Holdings Inc (GNRC)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.18 | 8.64 | 4.32 | 5.84 | 6.74 | |
| Number of days of payables | days | 35.87 | 42.27 | 84.42 | 62.51 | 54.14 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.18
= 35.87
Generac Holdings Inc's number of days of payables has shown fluctuations over the past five years. The trend indicates that the company has been able to manage its payables effectively in recent years. The number of days of payables decreased from 103.52 days in 2021 to 46.80 days in 2023, suggesting that Generac Holdings Inc has been paying off its suppliers more efficiently.
A lower number of days of payables indicates that the company is taking less time to settle its outstanding obligations to suppliers, which can be a positive sign of liquidity management. This improvement could be due to better negotiation terms with suppliers, streamlined payment processes, or improved working capital management.
Overall, the decreasing trend in Generac Holdings Inc's number of days of payables reflects a positive development in the company's ability to manage its payables efficiently in recent years. Investors and stakeholders may view this as a sign of improved financial health and operational effectiveness.
Peer comparison
Dec 31, 2023