Home Depot Inc (HD)

Number of days of payables

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Payables turnover		10.13	9.14	7.45	7.52	9.33
Number of days of payables	days	36.02	39.92	48.98	48.55	39.12

January 28, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.13
= 36.02

The number of days of payables for Home Depot Inc has exhibited fluctuations over the past five years, ranging from 36.02 days as of January 28, 2024, to 48.98 days as of January 30, 2022. A lower number of days of payables indicates that the company is taking less time to pay its suppliers, which can be favorable for cash flow management. In contrast, a higher number of days of payables suggests that Home Depot Inc is taking a longer time to settle its payables, potentially indicating liquidity challenges or a deliberate strategy to manage working capital.

It is noteworthy that there was a significant decrease in the number of days of payables from January 30, 2022, to January 28, 2024, which may imply more efficient management of payables during this period. Overall, analyzing the trend in the number of days of payables can provide insights into the company's vendor relationships, cash flow management, and working capital efficiency.