WW Grainger Inc (GWW)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | — | — | — | — | — | |
| Number of days of payables | days | — | — | — | — | — |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ —
= —
The analysis of W.W. Grainger Inc.'s number of days of payables over the past five years shows fluctuations in the efficiency of the company's payment cycle.
In 2023, the number of days of payables decreased to 34.88 days from 40.75 days in 2022, indicating an improvement in managing accounts payable. This suggests that the company may be paying its suppliers more promptly compared to the previous year.
Comparing 2023 to the years 2021, 2020, and 2019, it can be seen that the number of days of payables has varied within a narrow range between 35.88 days to 37.62 days. This stability indicates consistent management of accounts payable over these years.
Overall, a decrease in the number of days of payables can indicate improved liquidity management or negotiation power with suppliers, while an increase may suggest stretched payment terms or financial difficulties. It is essential for stakeholders to monitor this ratio to assess the efficiency of W.W. Grainger Inc.'s payment cycle and its impact on cash flow and working capital management.