Hillenbrand Inc (HI)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 4.16 | 4.18 | 4.18 | 6.27 | 5.18 | |
| Number of days of payables | days | 87.76 | 87.28 | 87.39 | 58.19 | 70.42 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.16
= 87.76
To analyze Hillenbrand Inc's number of days of payables, we can observe a consistent upward trend in this ratio over the past five years. The number of days of payables has increased from 72.80 days in 2019 to 87.76 days in 2023. This indicates that the company is taking longer to pay its suppliers and vendors.
The increase in the number of days of payables can be both positive and negative. On the positive side, a longer number of days of payables can indicate that Hillenbrand Inc is effectively managing its working capital, allowing the company to hold onto cash for a longer period before settling its payables. However, on the negative side, it may also suggest that the company is experiencing financial constraints and is stretching its payables to manage cash flow.
It is critical to consider the reasons behind the increase in the number of days of payables and assess its impact on the company's overall financial health and relationships with suppliers. Additionally, comparing this ratio with industry benchmarks and analyzing it in conjunction with other financial metrics would provide a more comprehensive understanding of Hillenbrand Inc's payables management.
Peer comparison
Sep 30, 2023