International Business Machines (IBM)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.67 | 6.87 | 6.54 | 6.03 | 5.35 | |
| Number of days of payables | days | 54.72 | 53.11 | 55.81 | 60.54 | 68.26 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.67
= 54.72
The number of days of payables for International Business Machines Corp. has shown a fluctuating trend over the past five years. The company's number of days of payables was 54.72 days as of December 31, 2023, compared to 53.11 days at the end of 2022, 55.81 days at the end of 2021, 47.09 days at the end of 2020, and 43.95 days at the end of 2019.
The increase in the number of days of payables from 2020 to 2021 indicates that the company took longer to pay its suppliers during that period. However, the decrease in the number of days of payables from 2021 to 2022 and then a slight increase in 2023 may suggest that the company has been managing its payables more efficiently.
Overall, a higher number of days of payables may indicate that the company is taking longer to settle its bills with suppliers, potentially signaling liquidity or cash flow challenges. Conversely, a lower number of days of payables may point to more efficient cash management practices. It is essential to monitor this ratio alongside other financial metrics to gain a comprehensive understanding of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Average Payables Payment Period