Honeywell International Inc (HON)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 4.22 | 4.72 | 4.48 | 4.86 | 5.38 | |
| Number of days of payables | days | 86.58 | 77.28 | 81.40 | 75.06 | 67.83 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.22
= 86.58
Honeywell International Inc's number of days of payables has shown a general increasing trend over the past five years, reaching 108.71 days as of December 31, 2023, compared to 96.96 days in the previous year. This indicates that the company is taking longer to pay off its trade payables.
A higher number of days of payables may suggest that Honeywell International Inc is effectively managing its cash flow by delaying payments to suppliers, allowing the company to hold onto cash for a longer period of time. However, excessively extending payment terms could strain supplier relationships.
It is important for stakeholders to monitor this metric to ensure that the company's payables are being managed in a sustainable manner, balancing the need for cash preservation with maintaining healthy supplier relations. Additionally, comparing this ratio to industry peers or historical performance can provide further insights into the company's payment practices.
Peer comparison
Dec 31, 2023