Garmin Ltd (GRMN)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.17 | 13.46 | 7.53 | 8.92 | 8.59 | |
| Number of days of payables | days | 29.99 | 27.11 | 48.45 | 40.90 | 42.50 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.17
= 29.99
Garmin Ltd's number of days of payables measures how long the company takes, on average, to pay off its suppliers. The trend in the number of days of payables over the past five years indicates that there has been some fluctuation.
In 2023, Garmin Ltd took approximately 29.99 days to pay its payables, showing a decrease from the previous year. This may indicate that the company has improved its efficiency in managing its payables and settling its obligations to suppliers more promptly.
Comparing to the year 2021, where the number of days of payables was 48.45 days, it is evident that Garmin Ltd managed to reduce the payment period significantly, implying tighter control over its working capital management.
Overall, the decreasing trend in the number of days of payables for Garmin Ltd suggests improved liquidity and potentially better relationships with suppliers, as the company is able to settle its payables more quickly.
Peer comparison
Dec 31, 2023