Hexcel Corporation (HXL)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		11.41	9.62	8.89	10.91	20.62
Number of days of payables	days	31.98	37.95	41.04	33.45	17.70

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.41
= 31.98

The number of days of payables for Hexcel Corporation has shown an increasing trend over the past five years. It was at 17.70 days as of December 31, 2020, which then increased to 33.45 days by December 31, 2021. Subsequently, the number of days of payables further rose to 41.04 days by December 31, 2022. However, there was a slight decrease recorded to 37.95 days by December 31, 2023, followed by a further decline to 31.98 days as of December 31, 2024.

The increasing trend in the number of days of payables may indicate that Hexcel Corporation has been taking longer to pay its suppliers over the years, which could potentially strain its cash flow management. On the other hand, the recent decreases in the number of days of payables may suggest improved efficiency in managing payables or negotiating better terms with suppliers.

Overall, monitoring this ratio is crucial for assessing the company's liquidity position and its ability to maintain good relationships with suppliers while effectively managing cash flow.